Flood Insurance vs. Homeowners Insurance

Standard homeowners insurance does NOT cover flood damage — this is one of the most common and costly misconceptions. Flood insurance is sold separately through the National Flood Insurance Program (NFIP) or private insurers.

Average NFIP premium: $700–$1,000/year. There is a 30-day waiting period for new NFIP policies (exceptions for loan closings).

If you're in a high-risk flood zone, your mortgage lender likely requires flood insurance. Even if you're not in a high-risk zone, 25% of flood claims come from low-to-moderate risk areas..