Insurance TypesFlood Insurance

Flood Insurance

Mandatory in high-risk flood zones. Covers water damage from flooding, which standard policies explicitly exclude.

Key Benefits

Only coverage available for flood damage

Government-backed NFIP coverage available in all states

Private flood insurance often cheaper than NFIP

Available even in high-risk zones

Building and contents coverage available

Ideal For

Properties in FEMA flood zones A, AE, or V

Coastal or waterfront properties

Properties in recurring flood areas

Riverside or low-lying properties

Coverage Highlights

  • Water damage from flooding
  • Debris removal after flooding
  • Sewage backup in some policies
  • Building structure coverage
  • Personal property coverage

Average Cost

$300-$1,200/year depending on zone

Actual costs vary based on property details, location, claims history, and specific coverage limits.

Common Misconceptions

Homeowners insurance covers flood (it explicitly excludes it)

Flood insurance only needed in high-risk zones (available everywhere)

NFIP is always cheapest (private options often cost less)

Mandatory only for mortgage lenders (true, but smart to get anyway)

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