Does homeowners insurance cover flood damage?

No, in most cases homeowners insurance does not cover flood events. If you’re in a high-risk zone, you may be required to purchase flood insurance. Otherwise, flood insurance is optional.

What is preferred risk flood insurance?

This low-cost flood insurance policy is available to renters and homeowners in low- to moderate-risk flood zones. Rates start at $100 annually. Policies typically cover up to $250,000 for a dwelling and $100,000 for personal belongings.

The program is not ending — but the pricing and rating structures changed in October 2021. The Risk Rating 2.0 model has updated annual premiums based on each individual property’s risk using the most recent actuarial practices to set rates. Most homeowners have experienced a slight increase in premiums since the model’s rollout. The current modeling system uses the 1%-annual-chance coastal and river flood risk to determine rates.

How do I find the right flood insurance coverage for my home?

You can purchase flood insurance through the NFIP or a private insurance company — like Liberty Mutual, Berkshire Hathaway, Assurant or AIG. The right flood insurance coverage for your home is based on the cost to replace your dwelling structure and your personal belongings. Coverage is limited to $250,000 for the structure and $100,000 for contents through NFIP, but private insurance may provide more coverage. If you are unsure about the right amount of flood insurance coverage for your home, speak with your insurance agent or contact NFIP at 877-336-2627.