When many people think about flooding, they picture coastal communities preparing for hurricanes and storm surge. But flooding is not limited to properties near an ocean, river or lake. Heavy rainfall, overwhelmed drainage systems, rapid development and other changing conditions can put homes and businesses at risk almost anywhere.
According to the National Flood Insurance Program, 99% of U.S. counties experienced a flood event between 2003 and 2023. From 2013 through 2023, one-third of NFIP flood insurance claims came from areas outside current high-risk flood areas. NFIP Fast Facts
The takeaway is simple: living outside a high-risk flood zone does not mean living without flood risk.
Flooding can happen far from the coast
Coastal storms are only one cause of flooding. Inland communities can experience flooding from:
- Prolonged or intense rainfall
- Rivers, streams and drainage canals overflowing
- Stormwater systems that cannot handle the volume of water
- New construction that changes how water drains across an area
- Oversaturated ground that can no longer absorb rainfall
- Rapid snowmelt in colder regions
- Post-wildfire conditions that increase runoff and erosion
Flooding can affect individual neighborhoods even when surrounding communities remain dry. Water follows the landscape, not the boundaries drawn on a flood map.
A lower-risk flood zone does not mean no risk
Flood maps are important tools for understanding risk and determining certain insurance requirements. However, they do not predict exactly where the next flood will occur.
A property outside a high-risk area may have a lower chance of flooding, but that risk is not zero. Conditions can also change over time as communities grow, drainage patterns shift and weather events affect the landscape.
Homeowners and business owners can look up their address through FEMA’s Flood Map Service Center and discuss the results with an insurance agent. The map is a helpful starting point, but it should not be the only factor considered when deciding whether to purchase flood insurance.
Does standard property insurance cover flooding
This is one of the most important questions property owners can ask. Most homeowners and renters insurance policies do not cover damage caused by flooding. General commercial property policies also often exclude flood damage. FloodSmart
Standard property insurance and flood insurance are designed to address different types of losses:
| Coverage | General purpose |
| Homeowners, renters or commercial property insurance | May cover losses caused by events such as fire, theft, wind or certain types of sudden water damage, subject to the policy’s terms and exclusions. |
| Flood insurance | Helps cover direct physical loss caused by a qualifying flood, subject to the flood policy’s terms, limits and exclusions. |
The source of the water matters. Water damage from a burst pipe, for example, is different from rising surface water entering a building. Two losses may look similar after the fact but fall under different insurance policies.
Because coverage varies, property owners should review their policies with an insurance agent instead of assuming all types of water damage are included.
What can flood insurance cover?
NFIP flood insurance offers two primary types of protection:
Building coverage
Building coverage can help protect the physical structure and certain permanently installed systems and equipment. Depending on the property and policy, this can include the foundation, electrical and plumbing systems, water heaters and central air-conditioning equipment.
Contents coverage
Contents coverage can help protect belongings inside a home or business. This may include furniture, clothing and certain appliances in a residence, or furniture, machinery, equipment and inventory in a business.
Building and contents coverage are separate. Purchasing coverage for a building does not necessarily mean its contents are also insured. Renters and business tenants should pay particular attention to contents coverage because the building owner’s policy generally does not protect a tenant’s belongings or business property.
Flood insurance does not cover every expense associated with a flood. Coverage depends on the policy, and limits and exclusions apply. An insurance agent can explain available options and help determine appropriate coverage for the property.
Do you need flood insurance if it is not required?
A lender may require flood insurance for certain mortgaged properties in high-risk areas. But a lack of a lender requirement does not mean the property is free from flood exposure.
Consider asking:
- Could heavy rain collect around the property?
- Have nearby roads, yards or drainage systems flooded before?
- Is the property near a river, creek, retention pond or low-lying area?
- Has recent development changed drainage in the neighborhood?
- Could you afford to repair the building and replace its contents without insurance?
These questions can help homeowners, renters and business owners have a more informed conversation with their insurance agent.
Don’t wait until a storm is approaching
Flood coverage should be considered before threatening weather enters the forecast. NFIP policies generally have a 30-day waiting period before coverage takes effect, although certain exceptions apply. Private flood insurance policies may have different requirements.
Reviewing your flood risk early gives you time to understand the available options, choose appropriate coverage and avoid discovering a gap after flooding has already begun.
Protect the property you have worked hard to build
Flooding does not only happen along the coast, and a standard property policy may not provide the protection you expect. A separate flood insurance policy can help homeowners and business owners prepare for a risk that exists in communities across the country.
Bankers Insurance Group is an authorized NFIP carrier serving homeowners, businesses and independent insurance agents. Learn more about our residential flood insurance and commercial flood insurance options, then speak with your insurance agent about your property’s flood risk.
This article is for general informational purposes only and does not alter, expand or replace the terms of any insurance policy. Coverage is subject to eligibility requirements and all applicable policy terms, conditions, limits and exclusions. Coverage and availability may vary. Please consult your insurance agent regarding your specific insurance needs.
