How to Buy Flood Insurance: A Complete Guide for First-Time Buyers

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Jess Ullrich
Written byJess Ullrich
Jess Ullrich
Jess UllrichInsurance Writer

Jess Ullrich is a personal finance writer who’s been creating financial and business content for over a decade. Her work has been published in Investopedia, MoneyWise, NextAdvisor, The HuffPost, and she's been contributing to Compare.com since 2024. Prior to writing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz.

Lequita Westbrooks
Lequita WestbrooksSenior Editor

Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.

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While it’d be convenient if your standard homeowners insurance covered everything, it simply isn’t the case.

One thing homeowners insurance typically doesn’t cover is flood damage. And unfortunately, flooding is a natural disaster that can happen anywhere, not just in high-risk areas. The good news is you can buy stand-alone flood insurance to protect your home.

If you’re considering flood insurance, here’s how it works, whether it makes sense for you, and how to find affordable coverage.

Do You Need Flood Insurance?

Standard homeowners insurance doesn’t cover flood damage, which can be expensive, as even a small amount of water can lead to costly repairs. While some homeowners might prefer to buy optional flood insurance for peace of mind, others in Special Flood Hazard Areas (SFHAs) will need to buy coverage.[1]

The Federal Emergency Management Agency (FEMA) designates SFHAs based on their high annual flooding risk.

When flood insurance is required

You’ll need to buy flood insurance if you live in an SFHA and have a federally backed mortgage. Because your home is in a high-risk zone, your lender will require coverage to protect their investment.

But you won’t need to buy coverage if you live outside of an SFHA or own your home outright.

When you should consider it, even when not required

Even if your lender doesn’t require flood insurance, it might be worth considering — especially if you live near water or your state experiences frequent storms or flash floods. Keep in mind that over 40% of flood insurance claims come from outside high-risk flood areas, according to FEMA.[2]

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NFIP vs. Private Flood Insurance: Understanding Your Options

You’ll come across two main types of flood insurance: coverage through the National Flood Insurance Program (NFIP) and private flood insurance companies. Private flood insurance offers more flexible coverage options, typically with higher limits and additional benefits. But premiums and availability vary by state and insurance company.

The National Flood Insurance Act of 1968 established the NFIP to protect property owners from flood damage and reduce the likelihood of flooding. Since 1980, the NFIP has paid out nearly 2 million flood damage claims, totaling over $87 billion in claims payouts.[3] [4]

Feature
sort ascsort desc
NFIP
sort ascsort desc
Private Flood Insurance
sort ascsort desc
Coverage limitsUp to $250,000 for structure and $100,000 for contentsTypically higher and more customizable (e.g., up to $1.25 million for structure)
Waiting period30 daysOften up to 15 days, but varies by insurer
Average costs$1,138 per yearVaries widely by your location, home value, and coverage level
Additional coverageIncreased cost of compliance (ICC) coverage may be available up to $30,000 if you’re in a high-risk flood areaOptional add-ons like additional living expenses, food spoilage, and pool cleanout

When to buy through NFIP

Opting for NFIP coverage instead of private flood insurance could make sense if its coverage limits are sufficient for your needs. For instance, if you live in a low-cost-of-living area, and $250,000 would be enough to rebuild your single-family home after a flood, NFIP coverage is worth considering.

Likewise, if you’re in a high-risk flood zone where private insurers may not offer coverage, the NFIP could be a smart choice. Its policies are competitively priced and widely available.

When to buy through a private insurer

Homeowners who need higher coverage limits may prefer private flood insurance. For example, some private insurers offer flood insurance coverage limits significantly higher than the NFIP’s maximum, with policies available for structures valued at over $1 million.

If you own a high-value home or live in a high-cost area, private coverage likely makes more financial sense.

You can also buy optional coverages through a private insurer, including pool cleanout, food spoilage, and additional living expense insurance. These coverages offer additional protection that could be worthwhile for certain homeowners.

Step-by-Step Guide to Buying Flood Insurance

A hallway with tiled floor is partially flooded, reflecting a clothes drying rack and a door leading to another room.

The process for buying flood insurance varies slightly depending on whether you choose NFIP coverage or private insurance. But here’s a general idea of what to expect.

Step 1: Determine your flood risk

First, you’ll want to determine your flood risk, which you can do by visiting FEMA’s Flood Map Service Center and typing in your address. The map will show you whether your home is in a flood zone and, if so, the type of zone.

Flood zones beginning with the letters A or V are high-risk areas, while zones B, C, or X are moderate or low risk. Note that flooding is possible even in lower-risk areas.

Step 2: Decide between NFIP and private insurance

Once you’ve determined your flood risk, you’ll want to decide between NFIP and private insurance. Consider your needs and budget to guide your search.

If you want higher coverage limits, private flood insurance is likely the better choice. But you can also compare quotes from the NFIP and private insurers to help you decide.

Step 3: Compare quotes

To get a quote from the NFIP, contact a licensed insurance agent. Rates are the same no matter which agent you work with.

Shopping for private flood insurance is a bit more complicated, plus rates can vary significantly by insurer. You’ll need to shop around and get quotes from multiple insurance companies. Some insurers offering private coverage include Aon Edge, Neptune Flood, and Beyond Floods.

Step 4: Choose the right coverage

The right coverage for you will depend on your unique needs and the value of your home. Building coverage should align with your home’s replacement cost in case of a catastrophic flood. Your coverage for your personal belongings should also be enough to cover repairs or replacement.

A private policy will likely offer higher limits than what you’d get through the NFIP. You may also have more optional coverages, such as additional living expenses or swimming pool cleanout protection.

Step 5: Apply for your policy

Once you’ve narrowed your options, it’s time to apply for a policy. To save time, first gather your required documents. Your insurer will likely want proof of your property’s address, a mortgage statement, and potentially a copy of your current homeowners policy.

Complete an application for flood insurance with your chosen insurer. Once you’ve applied, you’ll need to pay your first premium before your coverage goes into effect.

Step 6: Understand the waiting period

NFIP coverage generally has a 30-day waiting period, although exceptions apply in certain situations, such as mortgage closings or map changes. Private flood insurers often have shorter waiting periods, sometimes 15 days or less. Generally, there are no exceptions to these waiting periods, even for new homes.

How to Find Affordable Flood Insurance

Man in a gray shirt working on a laptop at a table in an office, with books and a plant in the background.

Flood insurance costs can vary widely depending on where you live, your home’s value, and your area’s flood risk. Expect higher flood insurance costs if you live in a high-risk area or if you own an expensive property. The average annual cost of an NFIP policy is around $1,138, according to NFIP data.

Keep in mind that NFIP has relatively low coverage limits, and homeowners seeking more coverage may be better off with private flood insurance. A private policy with a higher limit will likely be more expensive, but it will offer the financial protection you need if you own an expensive home or are located in a high-cost area.

Here are some tips to find an affordable policy for your needs:

  • Don’t buy from the first insurer you find.

  • Get quotes from different companies to find the best value.

  • Consider how coverage amounts affect your premiums.

  • Ask if a higher deductible will reduce your premiums.

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Advice for First-Time Buyers

Buying flood insurance for the first time can feel overwhelming, especially if you’re unfamiliar with the process. Understanding your options can save you from costly mistakes. Here are some potential pitfalls to avoid as a first-time buyer.

Common first-time buyer mistakes

  • Assuming your standard home insurance covers flooding

  • Waiting until a storm is in the forecast before buying coverage

  • Underestimating your flood risk

  • Choosing the first policy you find instead of comparing coverage and costs

  • Not buying enough coverage for your home’s level of risk

FAQs About Buying Flood Insurance

If you’re still unsure about buying flood insurance, here are answers to some of the most common questions.

  • How long does it take to get flood insurance?

    It depends. There’s typically a 30-day waiting period for NFIP coverage, but the waiting period for private flood insurance varies by company. It’s often 15 days or less.

  • Can you buy flood insurance during a storm?

    Yes. You can buy flood insurance during a storm. But your policy is unlikely to cover damage from that storm, as most policies have a waiting period before becoming effective.

  • How much does it cost to get flood insurance?

    It depends. Average annual premiums for NFIP coverage are around $1,138, according to Compare.com data. But if you opt for more coverage through a private insurer, you’re likely to pay higher rates. It’s important to compare flood insurance quotes to find an affordable policy that meets your needs.

  • Can you buy flood insurance anywhere?

    No. You can’t buy flood insurance anywhere, though it’s fairly accessible. Many independent insurance agents offer NFIP coverage. Private flood insurance may be a bit more difficult to find, as not all major home insurance companies offer it.

  • Is it hard to get flood insurance?

    No. It’s usually not hard to get flood insurance. NFIP coverage is available through most agents, and many private insurers offer it with flexible options. The process could be time-consuming, as it requires you to shop around and get quotes from different companies.

  • How much is flood insurance for a $300,000 home?

    The cost of flood insurance for a $300,000 home will vary depending on your location, coverage needs, and the insurance company you choose. Average annual premiums for NFIP insurance are around $1,138, according to Compare.com data, but the NFIP has a $250,000 limit on building coverage for single-family homes.

  • Which company has the best flood insurance?

    No single insurer will be the best flood insurance company for every homeowner. The right coverage for you will depend on several factors, including your home’s location, your coverage needs, and your area’s flooding risk.

  • Will FEMA cover flood damage?

    FEMA manages the NFIP, which pays for flood damage through more than 47 participating insurers. If you have an NFIP policy and your home has flood damage, the program may cover repairs or replacement up to your policy limits.

  • Where do most people purchase flood insurance?

    Many people buy flood insurance through the FEMA-managed NFIP, though you can also purchase it from a private insurer like Aon Edge or Neptune Flood.

Sources

  1. FEMA. "Special Flood Hazard Area (SFHA)."
  2. The National Flood Insurance Program. "What is My Flood Risk."
  3. The National Flood Insurance Program. "Historical NFIP Claims Information and Trends."
  4. Congressional Research Service. "A Brief Introduction to the National Flood Insurance Program."
Jess Ullrich
Jess UllrichInsurance Writer

Jess Ullrich is a personal finance writer who’s been creating financial and business content for over a decade. Her work has been published in Investopedia, MoneyWise, NextAdvisor, The HuffPost, and she's been contributing to Compare.com since 2024. Prior to writing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz.

Lequita Westbrooks
Edited byLequita WestbrooksSenior Editor
Lequita Westbrooks
Lequita WestbrooksSenior Editor

Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.

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