After Hurricane Katrina, thousands of Mississippi Gulf Coast homeowners learned a painful lesson: a homeowners policy and a flood policy are two different things. Wind damage and water damage are handled differently, and a standard homeowners policy does not cover flooding. Here’s how flood insurance works and how to make sure you’re not caught short.
What counts as a flood
Flood insurance covers damage from rising water: storm surge, heavy rain that overwhelms drainage, overflowing rivers and bayous, and water that comes in at ground level. Water that comes down, like rain through a roof torn open by wind, is generally handled by your homeowners policy instead. That line between wind and water is exactly where many post-storm disputes start, which is why having both coverages matters.
Where flood insurance comes from
- The National Flood Insurance Program (NFIP): run by FEMA and sold through local agents. For a home, it covers up to $250,000 for the building and up to $100,000 for contents, with contents bought separately.
- Private flood insurance: offered by private insurers. Depending on the policy, it may offer higher limits, coverage for extra living expenses, or a shorter waiting period. Availability and price vary by property.
The 30-day waiting period
NFIP policies generally don’t take effect until 30 days after you buy them. There are limited exceptions, such as when coverage is required as part of closing on a loan. In practice, that means you can’t wait until a storm shows up in the Gulf. If you’re going to buy flood insurance, buy it well before you need it.
Do you need it if you’re not in a flood zone?
If you have a federally backed mortgage on a home in a high-risk flood zone (zones that start with A or V on FEMA’s maps), your lender will require flood insurance. But flooding doesn’t follow map lines. Plenty of flood claims come from homes outside high-risk zones, and coverage there is often more affordable. On the Coast, where heavy rain and surge can reach well past the beach, it’s worth getting a price either way.
What NFIP flood insurance does and doesn’t cover
- Building coverage: the structure and foundation, electrical and plumbing, central air, water heaters, built-in appliances and cabinets, and permanently installed flooring.
- Contents coverage: furniture, clothing, electronics, and portable appliances, if you buy it.
- Not covered: your car (that’s comprehensive on your auto policy), most belongings in a basement, landscaping, and, under the NFIP, extra living expenses while your home is repaired.
Renting? You can buy contents-only flood coverage to protect your belongings.
Your flood checklist
- Check your flood zone on FEMA’s Flood Map Service Center.
- Get a quote for both NFIP and private flood, if available.
- Buy contents coverage, not just building coverage.
- Buy at least 30 days before hurricane season heats up.
- Keep photos of your belongings and copies of your policy somewhere off-site.
Want a second set of eyes on your coverage?
A licensed local agent can compare rates from multiple carriers, explain your options in plain English, and tell you if something important is missing. It’s free, and there’s no obligation.