Flood Insurance: Why It’s Not Included in Most Home Policies

When people think of protecting their home, they often assume their homeowners insurance has them fully covered. Fire? Covered. Theft? Covered. Flooding from a heavy rainstorm or rising river? Not so fast.

Flood damage is one of the most common — and costly — natural disasters in the U.S., yet most standard homeowners insurance policies don’t cover it. So, why is flood insurance separate, and how can you make sure you’re protected?

Let’s break it down.

Why Flood Insurance Isn’t Standard

The main reason flood insurance isn’t included in a typical homeowners policy is because flooding is considered a high-risk, high-cost event. Insurers separate it out to better manage risk — and frankly, because the financial impact of widespread flooding can be massive.

After Hurricane Katrina, Superstorm Sandy, and countless other floods over the years, insurers learned that covering flood damage within every policy just isn’t sustainable. So instead, flood coverage is typically offered through a separate policy, either from private insurers or via the National Flood Insurance Program (NFIP), which is backed by FEMA.

What Counts as a “Flood”?

Here’s something many homeowners don’t realize: not all water damage is considered flood damage. Insurance companies define a “flood” as:

“An excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.”

So, if a pipe bursts in your home or your washing machine overflows — that’s usually covered under your standard homeowners policy.

But if heavy rains cause a nearby river to overflow and water seeps into your basement? That’s flood damage — and you’ll only be covered if you have a flood insurance policy.

Do I Really Need Flood Insurance?

Many homeowners think, “I’m not in a flood zone, so I’m safe.” But here’s the thing:

More than 20% of flood claims come from properties outside high-risk flood zones.

Flooding can happen anywhere — and with the rise of unpredictable weather patterns, it’s becoming more common even in low-risk areas.

If you live in a high-risk zone and have a federally backed mortgage, you may even be required to carry flood insurance. But even if you’re not required to, having coverage can offer peace of mind and financial protection when you need it most.

What Does Flood Insurance Cover?

Flood insurance typically has two parts:

• Building Coverage – This covers the structure of your home, including walls, floors, plumbing, HVAC, and electrical systems.
• Contents Coverage – This covers personal belongings like furniture, electronics, clothing, and more.

You can choose one or both types of coverage, depending on your needs.

Final Thoughts

Flood insurance may seem like an added expense — until you need it. Without it, homeowners are often left paying out of pocket for major repairs, replacements, and clean-up costs that can easily reach tens of thousands of dollars.

If you’re unsure about your current coverage or whether flood insurance makes sense for you, we’re here to help. Reach out today and let’s review your options — so you’re not caught off guard by the unexpected.

Need help understanding your flood risk or getting a quote?

📞 Call us at (973) 429-8100 or 📩 email us anytime — we’re happy to walk you through it.