Does Insurance Cover Flash Floods?

Today, we’re explaining the most important things you should know about insurance claims and flash flooding.

No, a Standard Insurance Policy Doesn’t Cover Flash Floods

A standard homeowners insurance policy excludes flood damage. This includes any and all water that has touched the ground, whether or not it actually flooded your property.

If your property is affected by rising floodwaters, flash flooding, or flooding caused by heavy rain, then you are generally unable to make a successful insurance claim unless you have additional flood insurance coverage.

Many homeowners living in floodplains buy flood insurance. Most mortgage companies require you to have flood insurance if you are in a floodplain. You might buy flood insurance if you live in a low-lying area, for example, because your property has a higher risk of being affected by flooding.

Flash flooding, however, can happen anywhere – including hundreds of miles from the ocean. Many homeowners never even think about needing flood insurance, and sadly many do lose their home to flash flooding.

How Insurance Coverage Works For Water Damage

Insurance doesn’t typically cover flood damage. However, it does cover other types of water damage.

Here are some of the situations where insurance covers water damage:

Sudden Leaks (Like a Burst Pipe) – Generally Covered by Insurance: A standard homeowners insurance policy covers sudden leaks – like a pipe that burst with no prior warning. Maybe your pipes froze even after you took all necessary precautions, for example. Homeowners insurance should cover the cost of repairing your property to pre-loss condition.

Slow Leaks – Generally Not Covered by Insurance: If your home has a slow leak causing damage over time, then insurance is unlikely to cover this damage. A slow leak indicates wear and tear in your property – like a roof that needs to be repaired. Insurance is for sudden and unexpected losses – not wear and tear or maintenance issues.

Water Damage Caused by Structural Damage – Generally Covered by Insurance: If a storm tears away your roof, causing water to pour into your home, then insurance should cover the loss. Insurance may, however, deny a claim if the damage was caused by an old tree on your property that needed to be removed.

Water Damage Caused by Flash Floods, Storm Surges, Sustained Rainfall, or Other Flooding – Not Covered by Insurance (Unless You Have Flood Insurance): A standard policy does not cover flood damage. Whether that damage occurs because of flash flooding, storm surges, sustained rainfall, or other events, you cannot make an insurance claim for flood damage (unless you’ve purchased a separate flood insurance policy.

How to Buy Flash Flood Coverage for Your Home

Maybe you live near a mountain creek. Maybe you’re close to a major river. Whether you’re by the ocean or deep inland, you could be impacted by flash flooding.

Here’s what you need to know about buying coverage for flood damage and flash flooding:

• You can often buy flood insurance through your ordinary insurance company or insurance agency.
• Flood insurance costs as little as $325 per year. The more coverage you buy, the higher your premiums may be. Some homeowners buy $100,000 of coverage to partially cover their property, for example, while others buy a policy that fully covers the value of their property.
• Most flood insurance comes from the National Flood Insurance Program, or NFIP, which is part of FEMA. The only way to get replacement cost value on your claim is to purchase the policy limit for residential or commercial. Any other policy is figured on an actual cash basis.
• The NFIP works with insurance companies across the United States to offer flood insurance to homeowners, renters, and businesses.
• Alternatively, you can check the NFIP’s list of flood insurance providers for your area here: https://www.floodsmart.gov/flood-insurance-provider (or call 877-336-2627)
• Typically, NFIP policies have a 30-day waiting period. However, this waiting period may be waived in certain situations – say, if a federally-backed lender requires flood insurance or if there’s a change in community flood maps.

Do You Need Flood Insurance?

Only 4% of homeowners in the United States carry flood insurance. It’s not a common type of coverage to carry.

However, it could be a life-changing coverage if you’re concerned about flash flooding, hurricane flooding, and other risks – wherever you’re located:

• A single inch of floodwater could cause $25,000 in damage, according to the NFIP.
• Flood insurance can cost as little as $325 per year. It’s relatively affordable coverage for significant peace of mind.
• Only 4% of US homeowners carry flood insurance.
• Some homeowners and businesses are required to have flood insurance. If your home or business is in a high-risk flood area and you have a government-backed mortgage, then you must purchase flood insurance.
• Even if you live outside a high-risk flood area, your lender may require you to carry flood insurance.
• The average flood insurance payout is $68,000, according to the NFIP.

Flood Insurance vs. Federal Disaster Assistance

After a disaster, the Federal Emergency Management Agency (FEMA) may provide disaster assistance to affected homeowners.

Disaster assistance, however, isn’t free money: it’s a loan with interest. FEMA’s disaster grants, meanwhile, are only worth about $5,000 per household on average.

Here’s the difference between flood insurance and federal disaster assistance:

• FEMA may provide two types of federal disaster assistance, including a loan or grant.
• A FEMA federal disaster assistance loan must be repaid with interest. The loan covers the cost of repairing or restoring your property to pre-loss condition.
• A FEMA federal disaster grant, meanwhile, provides an average payment of $5,000 per household. It does not need to be repaid, but it typically only covers a small portion of losses.
• The average flood insurance claim settlement is around $68,000. This money never needs to be repaid. As long as you continue to pay your monthly insurance premiums and have a valid claim, insurance will cover the cost of repairing or restoring your property.

Hurricane Helene Caused Flood Damage to Millions of Homes Without Flood Insurance

In late September 2024, Hurricane Helene caused significant damage to property owners across the southeastern United States.

As Insurance Journal explains, Hurricane Helene affected millions of homes without flood insurance – including homeowners living hundreds of miles inland who never even thought they’d need to carry flood insurance.

Some homeowners living along creeks and rivers may have purchased flood insurance. However, Hurricane Helene even impacted homeowners far away from waterways in areas that hadn’t been impacted by flooding in decades.

Ultimately, the federal government provides limited assistance to individuals after a flood. As mentioned above, FEMA may provide loans (which need to be repaid with interest) or grants (with an average value of $5,000). However, FEMA’s financial resources may be strained in the aftermath of Hurricane Helene.

For all of these reasons and more, it may be worth carrying flood insurance.

Final Word

According to the NFIP, just one inch of floodwater can cause up to $25,000 in damage.

The 2024 Hurricane Helene disaster showed the importance of flash flooding insurance – even if you live hundreds of miles from the coast.

Many homeowners in low-lying coastal areas have flood insurance. Few homeowners in inland areas, unfortunately, carry the same coverage.

A good public adjuster fights for your rights against your insurance company, representing your best interests to ensure you receive the best possible claim outcome.

Contact ClaimsMate for a free consultation for your flash flood damage insurance claim.

Stephanie Corona

Stephanie is a property insurance claim expert with over 20 years of experience working as an insurance adjuster, expert witness, appraiser and umpire. She is passionate about sharing her expertise, knowledge, tips and training to help both property owners and Public Adjusters in their pursuit of effectively managing claims and recovering the claim settlement they deserve after a loss.