How Does Flood Insurance Coverage Work?
  • Post last modified:October 5, 2020
  • Post category:flood insurance

If you are like many other people looking for the right protection, you may be asking yourself, “How does flood insurance coverage work exactly?” It’s important to know that even if you have a homeowner’s insurance policy, that doesn’t mean you’re protected from flood damage. Your home is your castle. You’ve worked hard to get it just how you want it. It is, perhaps, the most tangible and visible manifestation of your achieving The American Dream. You know enough to have it insured properly. But do you know what your policy actually covers? More importantly, do you know what it doesn’t cover? One incident that your standard homeowners insurance policy will not cover is flooding—the #1 natural disaster in the United States.

Today we are going to discuss flood insurance coverage, how it works, and why it can cover you even if you’re not in a flood zone. 

What is Flood Insurance Coverage?


The most common flood insurance coverage is offered through a federally regulated program called the National Flood Insurance Program, which is the NFIP for short.

The policy covers $250,000 worth of damage, and also offers coverage for up to $100,000 worth of damages to your personal property. Although, if you need excessive coverage that exceeds these limits, you may need to get a policy through a private company instead of going federal, but our licensed insurance agents can certainly help you out with that.

In certain scenarios, you may be required to get flood insurance coverage. For instance, if you’re looking to take out a mortgage on a home that is in a high-risk flood zone, your lender may require you to take out a flood insurance policy to qualify for the loan.

What does my Flood Insurance Coverage Protect?

With flood insurance coverage, the NFIP’s building property policy can cover the cost to rebuild your home, or the actual value of the home. This can include bearer bonds and cash. The NFIP may give you $30,000 to use to tear down, raise, or even move your home. Although, this money gets added to any other claims the NFIP has paid out to you, and it’s important to note that the total payout cannot exceed $250,000.

How Does Flood Insurance Coverage Work Outside a Flood Zone?

Generally speaking, all properties are at risk of flooding, regardless of your location. Although, some areas are certainly at heavier risk, which is why they are classified as a “flood zone.” In fact, the National Flood Insurance Program (NFIP) says that people outside of what they call “mapped high-risk flood areas” file more than 20% of all NFIP flood insurance claims and receive one-third of Federal disaster assistance for flooding.

Floods can and do happen for any of a number of reasons. For example, a mid-winter or early spring thaw could produce large amounts of runoff in a very short period of time. If the ground is hard and frozen, as is often the case here in Connecticut, water can’t penetrate it and be reabsorbed. What happens then? Well, the water then runs off the surface and flows into lakes, streams and rivers.

This could cause excess water to overflow and, perhaps, get into your home. Add to that a heavy spring rain—again, not an unusual occurrence around here—and perhaps maybe an ice jam on a river that flows through your community, and we could see serious, widespread flooding – all things that would be protected by standard flood insurance coverage.

It’s important to note that your coverage will not vary depending on whether or not you are in a flood zone. No matter where you purchase a flood insurance policy, you will be covered all the same.

Getting Started with Flood Insurance Coverage

You may still have some questions about flood insurance coverage, but not to worry! Our licensed, professional insurance agents are here to help and answer any questions you may have. Looking to get started with flood insurance today? Reach out to us at 860-684-5270 or click below to learn more and get started on a quote.

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