Personal Insurance
Flood is not in your homeowners policy. Here's how it is actually covered.
Flood is excluded from every standard homeowners policy and written separately, through the NFIP or a private insurer. The waiting period is the part that catches people out.
No obligation. Starting a review does not change or bind any coverage.
What's going on
You have read that flood is not covered by your homeowners policy and you are trying to work out whether that matters for your address — or your lender has told you that you need a flood policy before closing and you have no idea what that involves.
Why it matters
Flood is excluded from every standard homeowners policy. Not limited, not sub-limited — excluded. It is covered by a separate policy, written either through the National Flood Insurance Program or by a private insurer, and the two behave differently on limits, on what they include, and on how quickly they start. The detail that surprises people most is that flood coverage generally will not respond to a storm that is already in the forecast, because it does not take effect immediately.
Things worth considering
Points we would talk through with you. Which of them apply depends on your situation, and what you do about them is your decision.
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The waiting period is the whole game
An NFIP policy generally carries a 30-day waiting period before coverage takes effect. There are narrow exceptions — most commonly when the policy is bought in connection with a mortgage closing. You cannot buy it when rain is forecast, so the decision has to be made on an ordinary day.
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Being outside a high-risk zone is not the same as being safe
Lenders require flood insurance for federally backed mortgages on properties in a Special Flood Hazard Area. But a substantial share of flood claims every year come from properties outside those zones, where nobody required anything. The requirement is a lending rule, not a risk assessment of your address.
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NFIP limits, and what sits above them
NFIP residential coverage currently caps at $250,000 for the building and $100,000 for contents, with separate deductibles for each. If your home would cost more than that to rebuild, the gap is real — private flood insurers and excess flood policies exist to sit above it, and are worth comparing.
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What an NFIP policy does not include
An NFIP policy does not pay additional living expenses, so it will not cover a hotel while the house is repaired. Many private flood policies do. This is one of the clearest practical differences between the two markets.
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Basements are treated differently
NFIP coverage in a basement is restricted. Structural elements and certain equipment are addressed; finished walls, flooring and most personal property stored down there generally are not. If your basement is finished, ask about this specifically.
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Flood maps change, and so does your zone
FEMA redraws flood maps. An address can move into or out of a high-risk zone without anything about the house changing, which can introduce a lender requirement you did not have last year — or remove one you did.
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How the building is valued
NFIP building coverage may settle on a replacement cost or actual cash value basis depending on the property and how it is occupied. Worth confirming rather than assuming, because the difference shows up only at claim time.
Information on this website is general in nature and is not a complete description of any insurance policy or every coverage option that may be available. Coverage availability, terms, conditions, limits and exclusions vary by insurer, policy and individual circumstances. The issued insurance policy and applicable endorsements control coverage. Beacon Point Insurance Group may provide information regarding available insurance options and discuss coverage considerations based on information you provide, but customers are responsible for selecting the carrier, coverages, limits and deductibles they wish to purchase. No insurance coverage is bound, changed, or canceled through this website unless confirmed by Beacon Point Insurance Group or the applicable insurer.
How this tends to come up
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A flash flood a mile from any river
The Kansas City metro's flood exposure is not only the Missouri and Kansas rivers. Heavy summer storms overwhelm creeks and storm drains, and water reaches properties that have never been anywhere near a mapped floodplain. Those owners generally have no coverage, because nobody ever required it of them.
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A buyer who finds out at closing
A lender flags that the property sits in a Special Flood Hazard Area and requires a flood policy before funding. Because it is tied to the mortgage closing, the usual 30-day wait does not apply — but it is a much better conversation to have two weeks out than two days out.
We Learn. We Compare. We Explain. You Decide.
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We Learn
We ask questions about your situation and the insurance you currently carry.
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We Compare
Based on the information you provide, we can obtain and compare available options from the insurance companies we represent.
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We Explain
We help you understand important differences in coverage, limits, deductibles, policy terms, and price.
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You Decide
You select the company, coverages, limits, deductibles, and options you want to purchase.
What working with us is like
The part people tend to mention is that someone explained it and then let them decide.
More personal coverage
Let's find the options that work for you.
No obligation. Starting a review does not change or bind any coverage.