An inch of water can cause up to $25,000 in damage to your home. But, while homeowners insurance covers a lot, it rarely covers flooding caused by rainstorms, hurricanes or other severe weather.
There are two primary ways to get flood insurance coverage: through the National Flood Insurance Program (NFIP) or through a private insurance company. There are pros and cons to each: While anyone can be approved for an NFIP policy, regardless of their location, the coverage limits are generally low.
- Read on: The best flood insurance companies
And as a government program, the NFIP is at the mercy of political machinations: The government shutdow in October 2025 meant homeowners were unable to purchase new NFIP policies or renew existing ones.
Private flood insurance can be more expensive, but it offers higher coverage limits and includes features not covered by the NFIP. Private insurers are not required to accept all applicants, but they're not impacted by shutdowns.
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Does homeowners insurance cover flooding?
Damage from water that originates inside your home, like from a burst pipe, is typically covered by homeowners insurance. That's especially true if the damage is what insurers describe as "sudden and accidental" and not due to poor maintenance or a mishap during renovations.
When the source is outside the house, it's a bit more complicated: Water that comes into your home from the top down, like a drip caused by rain, may be covered. But if that same rain causes a flood that fills your basement with two feet of water, you'd need flood insurance to get reimbursed for damage.
Some insurance companies will add flooding as a named peril in a rider to your existing homeowners policy.
What does flood insurance cover?
Backed by FEMA, the NFIP underwrites 90% of flood policies in the U.S. There are two forms of coverage, which can be bought together or separately.
Building coverage
- The house, including the foundation and walls
- Electrical and plumbing systems
- Central air conditioning, furnace and water heater
- Refrigerator, oven and other attached appliances
- Carpeting
- Permanently installed paneling, bookcases and cabinetry
- Detached garages
Contents coverage
- Personal belongings, like clothing, furniture and electronics
- Portable and window air conditioners.
- Portable microwave ovens and dishwashers.
- Area rugs and carpets not included in building coverage
- Clothes washers and dryers.
- Food freezers and the food in them.
- Certain valuables, like artwork and furs (up to $2,500)
What is not covered by flood insurance?
NFIP policies cap dwelling coverage at $250,000 and personal property coverage at $100,000.
In addition, they don't cover outside structures or belongings, like trees, decks, patios, fences, swimming pools or septic systems.
Basement coverage is also limited with NFIP policies: Basic structural elements and essential equipment (like furnaces and sump pumps) are covered but personal belongings and finished basement improvements are not.
Flood insurance also doesn't cover damage from a backed-up sewer or drain. You'd need water-backup coverage on your homeowner’s policy.
And if you have to relocate while damage from flooding is repaired, your living expenses are not covered by NFIP-backed insurance.
NFIP vs. private flood insurance
The NFIP will insure any homeowner, even one whose property is in a floodplain. You can get a policy directly from the program or through one of the many insurance companies that partner with it, including Amica, Farmers and Nationwide.
You can also get private flood insurance, which has higher coverage limits and more options for customization. But these companies aren't required to approve applicants and can decline to cover a high-risk property.
Private flood insurance is also unaffected by factors such as government shutdowns. For example, during the October 2025 shutdown, FEMA was unable to issue new NFIP policies or renew existing ones. Private carriers were able to continue enrolling new homeowners.
Neptune Flood Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Dwelling coverage: $4 million, contents coverage: $500,000
App available
No
Policy highlights
Neptune Flood Insurance offers relatively high dwelling and contents coverage for homeowners who need higher amounts of coverage than those offered by the NFIP. Neptune also offers coverage for things like the contents of your basement, temporary living expense coverage if your home is damaged and uninhabitable, and pool repair and refill.
Neptune Flood Insurance is one of our top picks for private flood insurance, with up to $4 million in building coverage and $500,000 in personal property coverage. It also provides up to $50,000 to repair or replace external structures, up to $10,000 to replace items stored in your basement and as much as $10,000 for pool cleanup and repair.
And unlike NFIP insurance, a basic flood policy with Neptune pays for your living expenses if you need to move during repairs.
If you have a high-end home, Chubb insures homes with a fair market value of at least $1 million against flooding. You can get up to $15 million in home and contents coverage, as well as up to $5,000 to help flood-proof your home or move your belongings if a flood warning is issued.
How much does flood insurance cost?
The average NFIP flood insurance costs about $786 a year, according to the Federal Emergency Management Agency (FEMA). The cost of private flood insurance varies widely, however.
In either case, your premiums will depend on the location and flooding risk of your home, the building materials and the number of floors, as well as the type of policy and the deductible amount you select.
Is flood insurance worth it?
According to FEMA, even one inch of water can cause $25,000 in damage to your home. So, a good flood insurance policy can easily pay for itself.
If you have a mortgage on a home in a FEMA-designated flood area, yor lender may require you to take out a flood policy. Even if your lender doesn't mandate it, flood insurance is a wise investment: Ninety percent of natural disasters in the U.S. involve flooding, according to NFIP data, and more than 40% of claims come from areas that aren't designated high-risk flood zones.
FAQs
Does homeowners insurance cover floods?
While homeowners policies typically cover water damage from burst pipes, they don't cover flood damage. You'll need to purchase a separate flood insurance policy, through either the NFIP or a private flood insurance carrier.
How much does flood insurance cost?
NFIP flood insurance policies average about $786 per year, although rates vary greatly by state and property.
Can renters get flood insurance?
Renters can buy an NFIP policy to cover contents up to $100,000. If you rent in a low-to-moderate risk area, you may be eligible for a Preferred Risk Policy, which has the lowest rates offered by the program. According to FEMA, a quarter of NFIP flood claims occur in low-to-moderate risk areas.
Who underwrites flood insurance from the National Flood Insurance Program?
The Federal Emergency Management Agency (FEMA) underwrites NFIP policies.
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