Under the National Flood Insurance Act, lenders issuing federally backed loans to borrowers in Special Flood Hazard Areas, must require the borrower to purchase flood insurance. Although flood insurance is not federally required if the property is located outside high-risk areas, your mortgage provider may still require flood insurance. 

If you're not required to have flood insurance, it may still be a good idea to consider coverage for peace of mind. 

Should I consider flood insurance if:

  • I already have a homeowners insurance policy?
    • Most homeowners insurance policies either only cover flooding caused by a leak in plumbing or appliance connections, or exclude it altogether. In the event of a flood, flood insurance covers direct physical losses to the building and its contents.
  • I live outside of a high-risk flood area?
    • Even though flood insurance is likely not required for your property, it can happen. From 2015 to 2019, over 40% of NFIP claims were from homes located outside of high risk areas.
  • I thought my home's flood damage will be covered by federal disaster assistance?
    • A presidential disaster declaration is required for federal disaster assistance to be made available.Disaster assistance from FEMA is designed to aid in recovery, but generally it is not enough to restore your home.
  • I'm renting a property?
    • Your landlord likely has a flood policy that covers the building, but not the contents (all of your stuff inside the building). It may be a good idea to consider a policy that only covers contents.