What we verified in “Flood insurance (NFIP): who needs it and what it covers”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to the CFPB, standard homeowners insurance does not cover damage from earthquakes or floods, although it may be possible to add that coverage; and lenders generally require proof that you have homeowners insurance.

   Sources 1 · What is homeowner's insurance? Why is homeowner's insurance required? (last reviewed Aug 08, 2024): 'Standard homeowner’s insurance doesn’t cover damage from earthquakes or floods, but it may be possible to add this coverage'; 'lenders generally require proof that you have homeowner’s insurance' · Checked October 17, 2026

2. According to FloodSmart, the website of FEMA's National Flood Insurance Program (NFIP), most homeowners and renters insurance does not cover flood damage; the NFIP offers policies for homeowners, renters and businesses; any homeowner in a participating NFIP community is eligible, including condo and townhouse owners; building policies cover up to $250,000 of flood damage and contents policies up to $100,000 for belongings inside your home; renters policies protect belongings up to $100,000; the policy covers direct physical flood damage; and building and contents coverage are typically purchased separately and have separate deductibles.

   Sources 2 · Buy a Flood Insurance Policy: 'Most homeowners and renters insurance does not cover flood damage'; 'The NFIP offers flood insurance policies for homeowners, renters and businesses'; 'Any homeowner who lives in a participating NFIP community is eligible, including people who own condominiums and townhouses'; 'Building policies cover up to $250,000 of flood damage and contents policies cover up to $100,000 of flood damage for belongings kept inside your home'; 'This type of coverage protects your belongings for up to $100,000 of damage'; 'covers direct physical flood damage to your home and your belongings'; 'Building and contents coverage are typically purchased separately and have separate deductibles' · Checked October 17, 2026

3. According to FloodSmart, building coverage includes, among other things, electrical and plumbing systems, refrigerators, stoves and built-in appliances, permanently installed carpeting, cabinets, foundation walls and staircases, and fuel and well water tanks; contents coverage includes clothing, furniture and electronics, portable and window air conditioners and valuables such as original artwork and furs (up to $2,500); the cause of flooding matters: it covers water from a sewer that backed up during a heavy rainstorm, but not from a sewer backup caused by clogged pipes; and, whatever the cause, it does not cover currency, precious metals and valuable papers, cars, personal property kept in basements, property outside the insured building (landscaping, septic systems, decks, fences and pools), temporary housing and additional living expenses during repairs, or business interruption losses.

   Sources 2 · Buy a Flood Insurance Policy, 'What does flood insurance cover?': 'Electrical and plumbing systems'; 'Refrigerators, stoves and built-in appliances like dishwashers'; 'Permanently installed carpeting'; 'Foundation walls, anchorage systems and staircases'; 'Clothing, furniture and electronic equipment'; 'Portable and window air conditioners'; 'Valuable items such as original artwork and furs (up to $2,500)'; 'What doesn't flood insurance cover?': 'would cover water damage to your home from a sewer that backed up during a heavy rainstorm'; 'It would not cover damage from a sewer backup caused by clogged pipes'; 'Currency, precious metals, stock certificates and other valuable papers'; 'Cars and most self-propelled vehicles'; 'Personal property kept in basements'; 'Property outside of an insured building'; 'Temporary housing and additional living expenses during your home's repair'; 'Financial losses caused by business interruption' · Checked October 17, 2026

4. According to FloodSmart, three things determine your flood insurance rate: where your property is built, how it is built and what it would cost to replace it; your premium is unique to your home; and the more than 48 insurance companies working with the NFIP all use the same pricing approach, so each offers the same rates and you do not have to shop around.

   Sources 2 · Buy a Flood Insurance Policy, 'NFIP flood insurance policy rates': 'where your property is built, how it’s built and what it would cost to replace it'; 'Your premium is completely unique to your home'; 'The NFIP partners with more than 48 insurance companies'; 'so you don't have to shop around. Each one offers the same rates' · Checked October 17, 2026

5. According to FloodSmart, your coverage goes into effect 30 days after the purchase date, with four exceptions: no wait if you buy while making, increasing, extending or renewing a mortgage; no wait if you change coverage while renewing; a one-day wait if your property is in a newly designated high-risk zone and you buy within 12 months of the update; and a one-day wait if flooding is caused or worsened by a wildfire on federal land and you buy within 60 days of the containment date; the policy lasts one year and coverage stays good for 30 days after it expires if you renew and pay the full premium by the end of that period.

   Sources 2 · Buy a Flood Insurance Policy, frequently asked questions: 'Your flood insurance coverage will go into effect 30 days after your date of purchase. There are four exceptions to this rule'; 'There is no wait if you buy flood insurance while making, increasing, extending or renewing a mortgage'; 'There is no wait if you change your flood insurance coverage while renewing your policy'; 'There is a one-day wait if your property is in a newly-designated high-risk flood zone and you buy a policy within 12 months of the update'; 'within 60 days of the wildfire containment date'; 'Your NFIP flood insurance policy lasts for one year'; 'Your coverage will be good for 30 days after it expires' · Checked October 17, 2026

6. Under 42 U.S.C. §4013(c), coverage under a new flood insurance contract, or a change in coverage, takes effect when a 30-day period ends that begins once all obligations are completed, including the application and payment of the initial premium; the wait does not apply to an initial purchase in connection with making, increasing, extending or renewing a loan, or to an initial purchase within one year after a flood zone revision.

   Sources 12 · 42 U.S.C. §4013(c)(1) ('shall become effective upon the expiration of the 30-day period beginning on the date that all obligations for such coverage (including completion of the application and payment of any initial premiums owed) are satisfactorily completed') and (c)(2)(A)–(B) ('when the purchase of insurance is in connection with the making, increasing, extension, or renewal of a loan'; 'if such purchase occurs during the 1-year period beginning upon publication of notice of the revision or updating') · Checked October 17, 2026

7. According to FloodSmart, you can buy NFIP coverage if your city or town participates in the program's floodplain management rules, and most US communities do; you are required to have flood insurance if you own a home in a Special Flood Hazard Area (SFHA) and have a government-backed mortgage; some banks require it even outside high-risk areas; if your property received federal disaster assistance before, you must have flood insurance to get it again, and the requirement is tied to the property, not the owner; homeowners insurance does not meet mortgage or disaster assistance requirements; federal disaster aid comes only with a presidential disaster declaration, which most floods do not get; and that aid usually comes as loans repaid with interest, while flood insurance claim payments do not have to be paid back.

   Sources 3 · Eligibility: 'You can get flood insurance from the National Flood Insurance Program if your city or town participates'; 'Most communities in the U.S. participate'; 'You're required to have flood insurance if you own a home or business in a Special Flood Hazard Area (SFHA) and have a government-backed mortgage'; 'Some banks require flood insurance even if you don't live in a high-risk area'; 'This requirement is tied to a property, not an individual homeowner'; 'It also won’t fulfill the mortgage or federal disaster assistance requirements for flood insurance'; 'Most flood events do not get a presidential disaster declaration'; 'Disaster aid typically comes in the form of loans that must be repaid with interest' · Checked October 17, 2026

8. According to FloodSmart, everyone lives in an area with some flood risk; zones A (A, AE, AH, AO, AR and A99) and V (V and VE) are high risk; if you own property in a high-risk zone and have a federally backed mortgage, you must buy flood insurance as a condition of the loan, and if not, it is strongly recommended; zones B, C and X are moderate or low risk and zone D is undetermined risk, which does not mean no risk, and coverage is recommended there too; one in three claims comes from low- and moderate-risk zones; check annually for updates; you can find your map and zone at the FEMA Flood Map Service Center or through your local floodplain administrator; and you can request a change with a Letter of Map Amendment (LOMA) or Letter of Map Revision (LOMR).

   Sources 4 · What is my flood zone?: 'Everyone lives in an area with some flood risk'; 'Zones A, AE, AH, AO, AR and A99 are high-risk flood areas'; 'Zones V and VE are high risk coastal areas'; 'If you own a property in a high-risk zone and have a federally backed mortgage, you are required to purchase flood insurance as a condition of that loan'; 'getting flood insurance is still strongly recommended, due to the high risk'; 'Zone D includes areas with possible flood hazards'; 'doesn’t mean “no risk.”'; '1 in 3 flood insurance claims come from low- and moderate-risk zones'; 'check annually for updates'; 'You can find them online at the FEMA Flood Map Service Center or by contacting your local floodplain administrator'; 'Letter of Map Amendment (LOMA) or Letter of Map Revision (LOMR)' · Checked October 17, 2026

9. According to FloodSmart, if your zone is about to change to higher risk, you should buy or renew now: when the new zone takes effect, premiums usually cannot rise more than 18% a year until they reach the full risk rate; the NFIP offers a Newly Mapped discount for buildings placed in an SFHA by a map update if you buy or renew within the first 12 months; and if you buy a home in a higher-risk zone, you may be able to assume the prior owner's NFIP policy, whose rate also usually cannot rise more than 18% a year, while a new policy starts at the full risk rate less discounts.

   Sources 4 · What is my flood zone?: 'you should purchase or renew your policy now'; 'your policy premiums cannot usually increase more than 18% per year, until the premium reaches the full risk rate'; 'the NFIP offers a Newly Mapped discount for buildings located in an SFHA following a flood map update'; 'within the first 12 months after the update'; 'you may be able to assume the prior owner's current NFIP policy'; 'If you instead purchase a new policy, your premium would begin at the full risk rate, less any eligible discounts' · Checked October 17, 2026

10. FloodSmart says you can contact your insurance agent or call the National Flood Insurance Program (NFIP) at 877-336-2627.

    Sources 4 · What is my flood zone?: 'Contact your insurance agent or call the National Flood Insurance Program (NFIP) 877-336-2627' · Checked October 17, 2026

11. Under 42 U.S.C. §4012a, regulated lending institutions may not make, increase, extend or renew a loan secured by a building or mobile home in a special flood hazard area where flood insurance is available unless it is covered by flood insurance for the term of the loan, for at least the outstanding principal balance or the maximum coverage available, whichever is less; they must accept private flood insurance that meets those requirements; and flood insurance is not required for a detached structure that does not serve as a residence.

    Sources 11 · 42 U.S.C. §4012a(b)(1)(A) ('not to make, increase, extend, or renew any loan secured by improved real estate or a mobile home'; 'is covered for the term of the loan by flood insurance in an amount at least equal to the outstanding principal balance of the loan or the maximum limit of coverage made available under the Act with respect to the particular type of property, whichever is less'), (b)(1)(B) ('to accept private flood insurance as satisfaction of the flood insurance coverage requirement') and (c)(3) ('for any structure that is a part of such property but is detached from the primary residential structure of such property and does not serve as a residence') · Checked October 17, 2026

12. Under 42 U.S.C. §4012a, with the exceptions the law sets, flood insurance premiums and fees on a home with a loan from a regulated institution are paid to the lender or servicer as often as loan payments are made, for the life of the loan, and deposited in an escrow account for the borrower; and those accounts are subject to section 10 of RESPA.

    Sources 11 · 42 U.S.C. §4012a(d)(1)(A) ('shall be paid to the regulated lending institution or servicer for any loan secured by the residential improved real estate or mobile home, with the same frequency as payments on the loan are made, for the duration of the loan'; 'shall deposit such premiums and fees in an escrow account on behalf of the borrower') and (d)(3) ('shall be subject to the provisions of section 10 of the Real Estate Settlement Procedures Act') · Checked October 17, 2026

13. Under 42 U.S.C. §4012a, if the lender or servicer finds that a home in a flood hazard area is not covered by flood insurance, or not enough, it must notify you to buy coverage at your expense; if you do not buy it within 45 days of the notice, it must buy it for you and may charge you the premiums and fees, including for coverage starting on the date your coverage lapsed; within 30 days of receiving confirmation that you have coverage, it must cancel the policy it bought and refund what you paid for any period when both policies overlapped; and it must accept your policy's declarations page, with the policy number and the insurer's or agent's contact information, as proof.

    Sources 11 · 42 U.S.C. §4012a(e)(1) ('shall notify the borrower under the loan that the borrower should obtain, at the borrower’s expense'), (e)(2) ('If the borrower fails to purchase such flood insurance within 45 days after notification'; 'including premiums or fees incurred for coverage beginning on the date on which flood insurance coverage lapsed'), (e)(3) ('Within 30 days of receipt by the lender or servicer of a confirmation of a borrower’s existing flood insurance coverage'; 'terminate any insurance purchased by the lender or servicer'; 'refund to the borrower all premiums paid') and (e)(4) ('shall accept from the borrower an insurance policy declarations page') · Checked October 17, 2026

14. Under 42 U.S.C. §4012a, the borrower and lender may jointly ask FEMA to review whether the home is in a special flood hazard area, with supporting technical information; FEMA must answer by letter no later than 45 days after receiving the request, and its determination is final.

    Sources 11 · 42 U.S.C. §4012a(e)(5)(A): 'The borrower and lender for a loan secured by improved real estate or a mobile home may jointly request the Administrator to review a determination'; 'Such request shall be supported by technical information'; 'Not later than 45 days after the Administrator receives the request'; 'The determination of the Administrator shall be final' · Checked October 17, 2026

15. Under 42 U.S.C. §4104a, if a regulated lender determines that the home you are buying is in a special flood hazard area, it must notify you in writing a reasonable period before you sign the purchase agreement or other documents; the notice must include a warning that the home is in that area, a description of the flood insurance purchase requirements and a statement that coverage can be bought through the NFIP and is also available from private insurers.

    Sources 13 · 42 U.S.C. §4104a(a)(1) ('to notify the purchaser or lessee'; 'in writing, a reasonable period in advance of the signing of the purchase agreement, lease, or other documents involved in the transaction') and (a)(3) ('a warning'; 'a description of the flood insurance purchase requirements'; 'a statement that flood insurance coverage may be purchased under the national flood insurance program and is also available from private insurers') · Checked October 17, 2026

16. According to FloodSmart, flood insurance policies do not renew automatically: you must renew every year; your insurer and the NFIP send reminders before expiration; if your lender requires flood insurance, you may be able to pay through escrow or otherwise pay your insurer; keeping continuous coverage lets you lock in a lower rate even if your map or zone changes; and if you let the policy lapse, a new one takes 30 days to start and you may lose certain discounts.

    Sources 5 · Renew a Policy: 'Flood insurance policies do not automatically renew, you need to renew your policy every year'; 'will send renewal reminders before it expires'; 'You may be able to pay your premium through an escrow account; if not, you’ll pay your insurance company'; 'Maintaining continuous coverage means you can lock in a lower rate, even if your flood map or zone changes'; 'You can get a new flood insurance policy, but it will take 30 days to go into effect'; 'You may also lose certain discounts if your policy lapses' · Checked October 17, 2026

17. According to FloodSmart, an elevation certificate shows how high a building is compared with how high local floodwaters are expected to get; most homeowners do not need one to get flood insurance, except in high-risk (Zone A) or high-risk coastal (Zone V) areas; it does not set your rate but can identify discounts; and your home may already have one on file with your community: ask your local floodplain manager.

    Sources 6 · Get an Elevation Certificate: 'An elevation certificate shows how high a building is compared to how high local floodwaters are expected to get'; 'Most homeowners do not need an elevation certificate to get flood insurance'; 'The exception is if you live in a high risk (Zone A) or high risk coastal (Zone V) flood area'; 'Elevation certificates don't set your rate, but they can identify discounts'; 'Your home may have an elevation certificate on file with your community' · Checked October 17, 2026

18. According to FloodSmart, after a flood you should report the loss to your insurer as soon as possible; an adjuster inspects your property and prepares an estimate you should review carefully; beforehand, take photos and videos, write down the make, model and serial number of appliances and keep samples of damaged carpet, flooring and curtains; NFIP policies do not cover mold damage; ask the adjuster to show their Flood Control Number card; a claim can take four to eight weeks to be paid; if you have a mortgage, the check is made out to you and your mortgage company; if the president declares a disaster, you can also apply for federal assistance; and fraud after a disaster is common: scammers may pose as government agents or adjusters.

    Sources 7 · How to start a flood insurance claim: 'Report the flood and your loss to your insurance provider as soon as possible'; 'Your adjuster will prepare a damage estimate for your review'; 'Take photos and videos of your flood-damaged belongings and property'; 'make, model and serial number'; 'Keep samples of flood-damaged items like carpet, flooring and curtains'; 'NFIP policies do not cover damage from mold'; 'ask to see their Flood Control Number card'; 'It can take four to eight weeks before your claim is finalized and paid'; 'the claim check will be written to you and your mortgage company'; 'if the president officially declares a disaster'; 'Fraud after a disaster is common. Scammers may pose as government agents or insurance adjusters' · Checked October 17, 2026

19. According to FloodSmart, if your claim is denied or you disagree with the amount, you can work with your adjuster or insurer, or appeal to FEMA within 60 calendar days of the date on the denial letter, in writing, with a copy of the letter and your supporting documents; there is no fee and you do not need anyone to represent you; if you complete an appraisal to settle a dispute over the amount, you can no longer appeal to FEMA; and you can sue your insurer within one year of the denial, a deadline an appeal does not extend.

    Sources 8 · How to appeal a denied flood insurance claim: 'you have a 60-day window to file an appeal with FEMA from the date of the letter'; 'Include a copy of the denial letter from your insurer'; 'There is no fee to file an appeal, and you do not need a third party to represent you'; 'if you complete an appraisal you cannot file an appeal with FEMA'; 'You must file suit within one year of the denial of your claim'; 'filing an appeal does not extend the one-year period of time to file suit' · Checked October 17, 2026

20. According to FloodSmart, NFIP Increased Cost of Compliance (ICC) coverage can provide up to $30,000 to elevate, move or rebuild a building in a special flood hazard area that your community determines was substantially damaged (repairs cost 50% or more of its pre-flood market value) or repeatedly damaged; it is claimed separately from the building or contents claim, and combined payments cannot exceed the building coverage limit.

    Sources 9 · Rebuild Better: 'you may receive up to $30,000 to make changes if your home or business was badly or repeatedly damaged by a flood'; 'The building is in a Special Flood Hazard Area (SFHA)'; 'The flood damage to your building is equal to 50% or more of the pre-flood market value'; 'You must file an ICC claim separately from your building or contents claim'; 'It helps you to raise, move, floodproof (if it’s not a home) or rebuild your home after a flood'; 'the combination of payments can’t exceed the maximum building coverage limit available through the NFIP' · Checked October 17, 2026

21. FloodSmart has pages in Spanish, such as 'Adquiera una póliza de seguro de inundación', which explains what to know before buying.

    Sources 10 · Adquiera una póliza de seguro de inundación: 'Lo que debe saber sobre la adquisición de un seguro de inundación'; 'La mayoría de los seguros de propietarios de vivienda e inquilinos no cubren daños por inundación' · Checked October 17, 2026

22. HUD-approved housing counselors provide independent advice on buying a home, renting, defaults and credit issues, often free or at low cost.

    Sources 14 · Find a Housing Counselor: 'advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'often at little or no cost to you' · Checked October 17, 2026