Flood Insurance

Flood insurance covers physical damage to a building and its contents caused by flooding, such as overflowing rivers, storm surge, or heavy rain that pools and enters the home. FEMA warns that most homeowners insurance does not cover flood damage; flood coverage is a separate policy. Mortgage lenders require it for homes in high-risk flood zones with government-backed loans.

Most flood policies in the U.S. are written through the National Flood Insurance Program (NFIP), created by Congress in 1968 and managed by FEMA. NFIP building policies cover up to $250,000 of flood damage to a home, and contents policies cover up to $100,000 for belongings, and there is typically a 30-day waiting period before a new NFIP policy takes effect. Private flood insurance is also available, sometimes with higher limits. Flood policies also have important limits on basements, cars, landscaping, and living expenses.

Flood insurance disputes often follow major hurricanes. Claims include underpaid or denied claims, disputes over whether damage was caused by flood (covered by flood insurance) or wind (covered by homeowners insurance), and allegations of doctored engineering reports. NFIP claims have strict federal rules: the policy requires a signed proof of loss by a set deadline, and under 42 U.S.C. 4072 a lawsuit over a disallowed claim must be filed within one year after the denial notice is mailed. Missing those deadlines can end a claim.

After a flood, photograph everything before cleanup, keep damaged items or samples if possible, and get every adjuster communication in writing. See our entries on homeowners insurance and actual cash value, and our guide on how to sue a company.