Flooding is one of the most devastating and costly disasters a homeowner can face. Yet many homeowners and real estate investors remain underprepared due to common misconceptions about flood insurance. While you may think your standard homeowners’ insurance policy has you covered or that you’re safe if you don’t live in a flood zone, the reality can be far different.
This blog will bust some of the most pervasive myths about flood insurance, helping you understand your risks and protect your property from potential financial ruin.
The Costly Reality of Flood Damage
According to FEMA, just one inch of water inside a home can cause more than $25,000 in damages. Yet, millions of people remain uninsured for flood events, often because they assume their homeowners’ insurance will cover the costs. Spoiler alert: it doesn’t.
Whether you’re in a high-risk flood zone or not, it’s crucial to understand how flood insurance works, what it covers, and why ignoring it may leave you vulnerable.
Myth 1: Homeowners Insurance Covers Flood Damage
One of the biggest misconceptions is that homeowners insurance includes coverage for flooding. While standard home insurance protects against many perils, flood damage is not one of them. If your home is submerged due to a weather event, your homeowners’ policy will most likely leave you footing the bill.
Why This Happens:
Homeowners insurance typically covers things like wind damage, fire, and theft. Flooding, considered a “high-risk event,” requires separate coverage through a specialized flood insurance policy. For example, water from a storm surge or overflowing creek is classified as flooding, and without a flood insurance policy, repairs and restoration costs are entirely on you.
Takeaway: Don’t assume. Review your existing policies to see if floods are covered, and add flood insurance if necessary.
Myth 2: Flood Insurance Is Only Needed in High-Risk Zones
Another misconception is that flood insurance is only important for those living in high-risk floodplain areas. The truth? Floods can happen anywhere.
The Facts:
- More than 25% of flood insurance claims come from properties outside of FEMA-designated high-risk flood zones.
- Urban areas with outdated drainage systems or sudden heavy rainfall can flood just as easily as riverbanks in flood zones.
- Climate change has led to an increased frequency of unpredictable flood events in low-risk areas.
Real-Life Example: Houston’s Hurricane Harvey in 2017 caused catastrophic flooding across neighborhoods classified as “low-risk.” Thousands of uninsured homeowners were faced with crippling repair costs.
Takeaway: If it rains where you live, you’re at risk. Flood insurance isn’t just for beachfront or floodplain properties.
Myth 3: Flood Insurance Is Too Expensive
Many people avoid purchasing flood insurance because they believe it costs a fortune. However, this assumption often overlooks critical factors like your home’s location and the actual cost of going without coverage.
What It Really Costs:
- Flood insurance premiums vary widely but typically cost between $400–$1,000 annually for properties in moderate- to low-risk zones.
- High-risk zones may have higher premiums, but the government-backed National Flood Insurance Program (NFIP) often caps rates at manageable levels.
Contrast This with the Cost of Repairs:
Without flood insurance, you could end up paying tens of thousands of dollars for repairs. From replacing drywall and flooring to restoring electrical systems, the costs quickly add up. Plus, federal disaster aid often comes in the form of loans you must repay—not as free money.
Takeaway: Flood insurance is an affordable way to avoid potentially catastrophic out-of-pocket costs.
Myth 4: You Can Only Buy Flood Insurance Through the NFIP
While the National Flood Insurance Program (NFIP) is a primary provider of flood policies, it’s not the only option. Private insurers also offer flood insurance, often with more flexible coverage and competitive rates.
The Perks of Private Flood Insurance:
- Higher coverage limits for both buildings and belongings.
- Additional perks like temporary living expenses or coverage for outdoor structures.
- No mandatory waiting period for coverage (unlike the NFIP’s standard 30-day wait).
Takeaway: Compare plans from both private insurers and the NFIP to find the best coverage for your needs.
Myth 5: You Can Wait Until a Flood Warning to Get Insurance
Flood insurance isn’t something you can purchase at the last minute. Most policies have a waiting period before coverage begins.
The Details:
- NFIP policies require a 30-day waiting period from the date of purchase.
- Private insurers may reduce this waiting time to as little as 10-14 days, but coverage is not instantaneous.
If you wait until a storm is on its way, it’s already too late. You can’t protect your property retroactively.
Takeaway: Plan ahead. Purchase flood insurance well before a potential flood event to ensure you’re fully protected.
Action Steps to Protect Your Property
Busting these flood insurance myths clarifies one key takeaway: every homeowner, regardless of location or perceived risk, should evaluate their need for flood insurance. Here’s what you can do today:
- Review Your Insurance Policies: Confirm what your homeowners’ insurance covers and identify gaps in flood coverage.
- Research Flood Risks in Your Area: FEMA’s Flood Map Service Center is an excellent starting point for understanding your flood zone.
- Get a Flood Insurance Quote: Compare plans from the NFIP and private insurers to find the coverage that fits your needs and budget.
Uniserv: Insurance You Can Trust
Whether it’s life insurance or business insurance, we offer a wide range of insurance solutions to protect the things you value the most.
We serve companies and individuals all over California. Call 888-698-6473 today or fill out the contact form to get the dependable protection you deserve.
