Introduction: A Costly Assumption
Imagine waking up to a flooded home after a heavy storm, only to find out that your homeowners insurance doesn’t cover flood damage. Many homeowners assume they’re protected, but in reality, standard homeowners insurance policies do not cover floods.
This misunderstanding has left thousands of homeowners financially vulnerable, especially in flood-prone states like Florida, Texas, and Louisiana. With floods causing billions in damages annually, it’s essential to know whether you’re covered—and what to do if you’re not.
This guide will explain:
- What standard homeowners insurance covers (and what it doesn’t)
- How flood insurance works
- How to assess your flood risk
- The steps to take when filing a flood insurance claim
What Standard Homeowners Insurance Covers (and What It Doesn’t)
Most homeowners insurance policies cover a variety of risks, including:
-
Fire damage
- Theft and vandalism
- Wind and hail damage
- Some types of water damage (like burst pipes)
However, flooding is almost always excluded. This means that if rising water from a storm, hurricane, or overflowing river damages your home, you won’t be covered unless you have a separate flood insurance policy.
Water Damage vs. Flood Damage
Not all water damage is considered “flood damage.” Insurance companies make a clear distinction:
- Covered by Homeowners Insurance: Water damage from a burst pipe, roof leak, or appliance malfunction
- Not Covered (Flood Insurance Needed): Water entering your home from outside due to heavy rain, storm surge, or overflowing rivers
Without flood insurance, homeowners may be responsible for tens of thousands of dollars in repairs.
What is Flood Insurance, and Do You Need It?
Since standard homeowners insurance doesn’t cover floods, homeowners need a separate flood insurance policy.
Flood insurance is available through:
- The National Flood Insurance Program (NFIP) – Backed by FEMA, available in most high-risk areas
- Private Insurance Companies – Some offer additional coverage beyond NFIP limits
Who Needs Flood Insurance?
While flood insurance isn’t legally required for everyone, it is mandatory if:
- Your home is in a high-risk flood zone (FEMA-designated Special Flood Hazard Area – SFHA)
- You have a mortgage from a federally regulated lender
Even if you’re not in a high-risk zone, over 40 percent of all flood claims come from areas outside these designated flood zones. With climate change increasing the frequency of severe storms, more homeowners are now at risk than ever before.
How Much Does Flood Insurance Cost?
Flood insurance rates vary based on:
- Your home’s location and elevation
- Whether you’re in a high-risk flood zone
- The type of coverage you select
NFIP Flood Insurance Costs (2024 Estimates)
- Average annual premium: $700 – $1,200
- High-risk areas: Can exceed $3,000 per year
- Low-to-moderate risk areas: As low as $300 per year
FEMA’s Risk Rating 2.0 pricing model now bases rates on individual property risks rather than broad flood zone designations. Some homeowners are seeing lower rates, while others may experience increases.
How to Check Your Home’s Flood Risk
If you’re unsure whether your home is at risk, here’s how to find out:
1. Use FEMA’s Flood Map
Check your flood risk at mmsc.fema.gov
2. Look at Local Flood History
If your area has flooded before, it is likely to happen again
3. Ask Your Insurance Agent
Your insurance provider can assess your home’s risk and recommend coverage options
4. Consider Climate Trends
Rising sea levels and stronger storms are increasing flood risks nationwide, even in areas that weren’t previously considered high-risk
What to Do If Your Home is Flooded: Filing a Flood Insurance Claim
If your home suffers flood damage, taking the right steps immediately can speed up your claim and ensure you receive the maximum payout.
- Report the Flood Immediately
- Contact your flood insurance provider within 24 hours. Delaying can slow down your payout.
- Document Everything
- Take clear photos and videos of all damage before starting any cleanup.
- Prevent Further Damage
- While you should avoid making permanent repairs until your adjuster arrives, taking small steps (like drying out furniture) can help minimize losses.
- Work with Your Adjuster
- A flood insurance adjuster will inspect your property and assess damages. Having organized documentation will make this process smoother.
- Review Your Payout Offer
- If the amount seems too low, you can dispute it. Consider getting an independent estimate from a contractor.
The Role of Adjusters in the Flood Claims Process
Adjusters play a critical role in flood insurance claims. They:
- Assess flood damage and estimate repair costs
- Ensure claims are filed correctly and efficiently
- Help homeowners navigate the complex insurance process
Not all adjusters work for the homeowner. Public adjusters represent homeowners, while insurance company adjusters work for insurers. If you ever feel your claim isn’t being handled fairly, getting a second opinion from a public adjuster can be beneficial.
Why the Right Claims Management System Matters
Filing a flood insurance claim is often a frustrating and slow process, especially after major storms when thousands of claims are being handled at once.
Adjusters play a key role in assessing damage, documenting losses, and ensuring homeowners receive a fair settlement. However, many adjusters still rely on outdated systems that create delays, leading to longer wait times for homeowners who need financial relief quickly.
How Technology is Improving the Claims Process
Modern claims management platforms, like Dragonfile, help adjusters work more efficiently by:
- Faster Adjuster Assignments – Homeowners get inspections sooner
- Paperless Documentation – No lost files, reducing delays
- Improved Communication – Adjusters, insurers, and homeowners stay aligned
A well-organized claims process means homeowners get their payouts faster, helping them recover and rebuild sooner.
While you may not see Dragonfile directly, it’s working behind the scenes to streamline claims management for adjusters—ensuring that when disaster strikes, homeowners aren’t left waiting for the help they need.
Final Thoughts: Are You Covered?
If you don’t have flood insurance, now is the time to consider getting coverage.
- Check your policy—don’t assume you’re covered
- Assess your flood risk—climate change is increasing risks everywhere
- Act before it’s too late—there is often a 30-day waiting period for new flood insurance policies
A well-prepared homeowner is a protected homeowner. Reviewing your insurance coverage today could save you from financial disaster tomorrow.