The full explanation
Most of these policies are backed by FEMA's National Flood Insurance Program (NFIP) and bought through insurers and agents. If your home is in a high-risk flood area and your mortgage is backed by the federal government, the lender is required to demand it; outside those areas it is optional, but floods happen there too.
An example
The house Gloria wants is in a high-risk area on FEMA's map. Her lender requires flood insurance, and she adds it to her monthly budget.
In numbers: flood insurance
High-risk-zone homes with NFIP flood insurance: of the homes in FEMA's high-risk zone, the share with a National Flood Insurance Program (NFIP) policy, nationwide and in some of the 50 states.
- Nationwide
- 47.9%
| State | Figure |
|---|---|
| Virginia | 99.6% |
| Massachusetts | 50.3% |
| Illinois | 25% |
| Minnesota | 16.6% |
| West Virginia | 10.3% |
If someone mentions "flood insurance", think of these figures: in Virginia, 99.6% of homes in the high-risk zone have an NFIP policy; in West Virginia, 10.3%; nationwide, 47.9%.
Sources: Homes with flood insurance (NFIP, FEMA) (As of August 3, 2026)
Where you see it on the site
You will see it in…
- FEMA's flood zone map for the address
- The lender's requirements before closing
- The Loan Estimate, within the projected payments when it applies
