Things You Might Not Know About Flood Insurance

When people think about protecting their home, flood insurance isn't always at the top of the list. But flooding is one of the most common and costly disasters in North America. While many homeowners understand the basics, there are several surprising facts about flood insurance that could affect how you protect your property. Here are some things you might not know—but definitely should.

1. Flood Insurance Isn’t Just for High-Risk Areas

Many assume flood insurance is only for people living near rivers or coastal zones. In reality, over 20% of all flood insurance claims come from properties in low- to moderate-risk areas, according to FEMA. Just because you're not in a designated flood zone doesn’t mean you’re safe. Heavy rain, blocked drainage, or melting snow can cause flooding anywhere.

2. Homeowners Insurance Doesn’t Cover Flooding

Standard homeowners insurance does not cover flood damage. That means if your basement fills with water after a heavy rainstorm, or your first floor is submerged from a rising creek, you’re likely on your own financially—unless you have a separate flood insurance policy.

3. There’s a Waiting Period

One of the biggest surprises for new policyholders is the 30-day waiting period before most flood insurance policies take effect. That means you can’t buy coverage a few days before a big storm and expect to be protected. You need to plan ahead.

4. Basement Coverage Is Limited

Even if you have flood insurance, don’t assume your entire basement is covered. NFIP policies often limit coverage for finished basements, flooring, wall coverings, and personal belongings stored below ground level. Sump pumps and furnaces may be covered, but luxury items like carpeting or home theaters likely are not.

5. Federal Flood Insurance Has Coverage Caps

If you're getting your flood insurance through the National Flood Insurance Program (NFIP), there are coverage limits: $250,000 for the building and $100,000 for contents. If your home or possessions exceed that value, you’ll need to purchase excess flood insurance through a private insurer to be fully protected.

6. Flood Insurance Covers More Than Just Rising Rivers

“Flooding” includes more than just a river or ocean overflowing. It also refers to heavy rain that causes surface water to pool, storm surges, snowmelt, or broken levees and dams. As long as the flooding affects at least two properties or two acres, it generally qualifies for coverage.

7. Flood Maps and Premiums Change Over Time

FEMA regularly updates its flood maps, which can change your flood zone designation—and your premium. You could be moved into a higher-risk zone and be required to buy insurance for the first time, or you might be reclassified into a lower-risk zone and qualify for reduced rates. Always check your flood zone status and reevaluate your policy regularly.

8. Renters Can and Should Get Flood Insurance Too

Flood insurance isn’t just for homeowners. If you rent, you can still get contents-only coverage to protect your personal belongings, including electronics, furniture, and clothing. The landlord’s insurance doesn’t cover your possessions in the event of a flood.

9. You Can Insure Even If You’ve Had a Previous Flood

Many people think they can’t get flood insurance after their home has already flooded. Not true. In most cases, you can still purchase flood insurance—although your premium may be higher if you have a history of claims. It’s best to speak with a licensed agent to understand your options.

Final Thoughts

Flood insurance can be more complicated than it first appears. From hidden coverage limits to surprising risk areas, understanding the finer details could make a huge difference when disaster strikes. Whether you own or rent, it’s worth taking a closer look at your flood risk and what kind of coverage you might need.

Don’t wait until it’s too late—flood insurance is one of those things you’ll wish you had, if the worst ever happens.