Flood

Why Flood Insurance Is Not Covered by Standard Home Insurance

Many homeowners are surprised to learn that flood damage is not covered by a standard homeowners insurance policy. This misunderstanding often comes to light only after a major storm, when it’s too late to add protection. Understanding why flood insurance is excluded—and what your options are—can help you avoid a costly gap in coverage.

What Counts as a “Flood”?

In insurance terms, a flood is defined as water rising from the ground and entering your home, typically involving:

• Heavy or prolonged rainfall

• Overflowing rivers, streams, or creeks

• Storm surge from hurricanes or coastal storms

• Rapid snowmelt

• Mudflow or surface water runoff

If water enters your home from outside and below, it is almost always classified as flood damage.

Why Home Insurance Excludes Flooding

Standard homeowners insurance policies are designed to cover sudden and accidental losses, such as:

• Fire

• Wind damage

• Theft or vandalism

• Burst pipes (inside the home)
  
  

Flooding, however, is considered a catastrophic and widespread risk. When floods occur, they often impact thousands of homes at once, creating losses that are too large and unpredictable for traditional home insurance carriers to absorb without dramatically increasing premiums for everyone.

To keep homeowners insurance affordable, flood risk is handled separately.

“But I Had Water Damage—Why Isn’t It Covered?”

This is one of the most common points of confusion. The source of the water matters:

Covered by Home Insurance: Burst pipe inside the home, Water heater failure, Ice dam damage, Overflowing toilet

NOT Covered by Home Insurance: Rising water from outside, Overflowing creek or river, Surface water runoff, Backed up sewer

Even if flooding is caused by heavy rain or a hurricane, flood damage itself still requires a separate flood policy.

Who Provides Flood Insurance?

Flood insurance is most commonly written through:

• The National Flood Insurance Program (NFIP), backed by FEMA

• Private flood insurance carriers, which may offer higher limits or additional options

Flood insurance policies are separate contracts with their own coverage limits, deductibles, and waiting periods.

“I’m Not in a Flood Zone—Do I Really Need It?”

Yes, potentially. In fact:

• More than 20% of flood claims come from homes outside high-risk flood zones

• Flood zones can change over time

• Heavy rainfall and drainage issues can cause flooding anywhere

If you’re in a low- or moderate-risk area, flood insurance is often very affordable compared to the cost of repairs after even a few inches of water.

Why Flood Insurance Matters

Just one inch of floodwater can cause tens of thousands of dollars in damage, affecting:

• Flooring and drywall

• Electrical and HVAC systems

• Appliances

• Furniture and personal property

Without flood insurance, these costs are almost always 100% out-of-pocket.

The Bottom Line

Flood insurance isn’t included in standard homeowners insurance because it protects against a unique, large-scale risk. Unfortunately, floods don’t wait for you to realize you’re uninsured.

If you own a home—or even rent one—it’s worth reviewing your flood exposure and understanding your options before the next storm hits.

If you’d like help reviewing your coverage or getting a flood insurance quote, an independent agent can walk you through what makes sense for your location, budget, and risk level.