Category: Flood

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When many people think about flooding, they picture coastal communities preparing for hurricanes and storm surge. But flooding is not limited to properties near an ocean, river or lake. Heavy rainfall, overwhelmed drainage systems, rapid development and other changing conditions can put homes and businesses at risk almost anywhere.

According to the National Flood Insurance Program, 99% of U.S. counties experienced a flood event between 2003 and 2023. From 2013 through 2023, one-third of NFIP flood insurance claims came from areas outside current high-risk flood areas. NFIP Fast Facts

The takeaway is simple: living outside a high-risk flood zone does not mean living without flood risk.

Flooding can happen far from the coast

Coastal storms are only one cause of flooding. Inland communities can experience flooding from:

• Prolonged or intense rainfall
• Rivers, streams and drainage canals overflowing
• Stormwater systems that cannot handle the volume of water
• New construction that changes how water drains across an area
• Oversaturated ground that can no longer absorb rainfall
• Rapid snowmelt in colder regions
• Post-wildfire conditions that increase runoff and erosion

Flooding can affect individual neighborhoods even when surrounding communities remain dry. Water follows the landscape, not the boundaries drawn on a flood map.

A lower-risk flood zone does not mean no risk

Flood maps are important tools for understanding risk and determining certain insurance requirements. However, they do not predict exactly where the next flood will occur.

A property outside a high-risk area may have a lower chance of flooding, but that risk is not zero. Conditions can also change over time as communities grow, drainage patterns shift and weather events affect the landscape.

Homeowners and business owners can look up their address through FEMA’s Flood Map Service Center and discuss the results with an insurance agent. The map is a helpful starting point, but it should not be the only factor considered when deciding whether to purchase flood insurance.

Does standard property insurance cover flooding

This is one of the most important questions property owners can ask. Most homeowners and renters insurance policies do not cover damage caused by flooding. General commercial property policies also often exclude flood damage. FloodSmart

Standard property insurance and flood insurance are designed to address different types of losses:

Coverage	General purpose
Homeowners, renters or commercial property insurance	May cover losses caused by events such as fire, theft, wind or certain types of sudden water damage, subject to the policy’s terms and exclusions.
Flood insurance	Helps cover direct physical loss caused by a qualifying flood, subject to the flood policy’s terms, limits and exclusions.

The source of the water matters. Water damage from a burst pipe, for example, is different from rising surface water entering a building. Two losses may look similar after the fact but fall under different insurance policies.

Because coverage varies, property owners should review their policies with an insurance agent instead of assuming all types of water damage are included.

What can flood insurance cover?

NFIP flood insurance offers two primary types of protection:

Building coverage

Building coverage can help protect the physical structure and certain permanently installed systems and equipment. Depending on the property and policy, this can include the foundation, electrical and plumbing systems, water heaters and central air-conditioning equipment.

Contents coverage

Contents coverage can help protect belongings inside a home or business. This may include furniture, clothing and certain appliances in a residence, or furniture, machinery, equipment and inventory in a business.

Building and contents coverage are separate. Purchasing coverage for a building does not necessarily mean its contents are also insured. Renters and business tenants should pay particular attention to contents coverage because the building owner’s policy generally does not protect a tenant’s belongings or business property.

Flood insurance does not cover every expense associated with a flood. Coverage depends on the policy, and limits and exclusions apply. An insurance agent can explain available options and help determine appropriate coverage for the property.

Do you need flood insurance if it is not required?

A lender may require flood insurance for certain mortgaged properties in high-risk areas. But a lack of a lender requirement does not mean the property is free from flood exposure.

Consider asking:

• Could heavy rain collect around the property?
• Have nearby roads, yards or drainage systems flooded before?
• Is the property near a river, creek, retention pond or low-lying area?
• Has recent development changed drainage in the neighborhood?
• Could you afford to repair the building and replace its contents without insurance?

These questions can help homeowners, renters and business owners have a more informed conversation with their insurance agent.

Don’t wait until a storm is approaching

Flood coverage should be considered before threatening weather enters the forecast. NFIP policies generally have a 30-day waiting period before coverage takes effect, although certain exceptions apply. Private flood insurance policies may have different requirements.

Reviewing your flood risk early gives you time to understand the available options, choose appropriate coverage and avoid discovering a gap after flooding has already begun.

Protect the property you have worked hard to build

Flooding does not only happen along the coast, and a standard property policy may not provide the protection you expect. A separate flood insurance policy can help homeowners and business owners prepare for a risk that exists in communities across the country.

Bankers Insurance Group is an authorized NFIP carrier serving homeowners, businesses and independent insurance agents. Learn more about our residential flood insurance and commercial flood insurance options, then speak with your insurance agent about your property’s flood risk.

This article is for general informational purposes only and does not alter, expand or replace the terms of any insurance policy. Coverage is subject to eligibility requirements and all applicable policy terms, conditions, limits and exclusions. Coverage and availability may vary. Please consult your insurance agent regarding your specific insurance needs.

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“I don’t need Flood Insurance,” a thought that has gone through many homeowners’ minds, especially if they don’t live near a body of water. Also, probably one of the most regretted statements ever made. Many people don’t know that flooding occurs in EVERY STATE and can happen away from large bodies of water.

Some people also assume that homeowners insurance covers flooding or that they don’t need flood insurance if they rent. If only it were that simple. Let’s discuss flooding, its causes, who needs flood insurance, and why.

What Causes Floods?

Flooding occurs when land that is usually dry overflows or is submerged in water. It’s generally caused by heavy rainfall, rapid snowmelt, or storm surge from a hurricane. It is also the most common natural disaster.

Another cause of flooding is new construction and paving. It can change the land’s ability to drain properly and cause flooding in areas that were not originally at risk. So areas initially zoned as low-risk can quickly become high-risk as new construction and development change the landscape. That’s why it’s a good idea to have a flood insurance policy.

Does Homeowners Insurance Cover Flood Damage?

No. No, it does not. This is a common misconception that, unfortunately, leaves a lot of homeowners “stranded” when a flood does occur. The same goes for business owners or renters; those insurance policies usually do not cover floods. 

If you think or are 100% certain your insurance covers flood, we recommend calling your agent just to confirm. What would it hurt? 

Who Needs A Flood Insurance Policy?

As mentioned above, flooding is a common natural disaster, and unexpected circumstances can cause it. So even if you don’t live on the coast, it’s a good idea to carry flood insurance or at least speak to an agent to see if it may be a good choice for you.

Home and business owners are equally at risk. You can check whether you are in a high or low-risk area using this flood map provided by FEMA. Being in a high-risk area could mean a higher rate; however, the average flood insurance claim in 2024 was $44,401. Only a few home or business owners have that kind of safety net. 

Some people may choose to rely on Federal disaster assistance, which comes in two forms. One is a loan, which must be paid back with interest, and the other is a FEMA disaster grant, which is about $5,000 on average per household. Still not going to cover that average of $44k in damage. A flood insurance policy provides peace of mind, especially considering that just 1 inch of floodwater can cause $25,000 in damages. 

According to FEMA, $985 was the average annual NFIP policy premium in 2024. Now, this is an average number, and your risk factor plays a role in your premium. But when the numbers to restore your home and chances of a disaster are so high – how much would you pay for the comfort of knowing your home or business is covered when the unexpected happens?

What is an NFIP Policy?

NFIP is the National Flood Insurance Program. It is managed by FEMA and is delivered to the public by a network of more than 50 insurance companies – including us! The government uses specific metrics and sets the rates for these types of properties, so they are the same regardless of the carrier you choose. At the end of the day, it’s best to choose a carrier you trust. 

Flood insurance can be mandatory. The federal government requires mortgaged properties in Special Flood Hazard Areas (SFHA) to be insured against flooding. The National Flood Insurance Program has changed how it determines flood risk and flood insurance prices with Risk Rating 2.0. 

Risk Rating 2.0 is a transformational leap forward. It enables FEMA to set fairer rates and ensures rate increases and decreases are fair. Rates are easier to understand and better reflect a property’s flood risk for more individualized coverage and cost.

With the new risk rating, FEMA has the ability and tools to address rating differences by including more flood risk variables. These include flood frequency, multiple flood types—river overflow, storm surge, coastal erosion, and heavy rainfall—and distance to a water source, along with property characteristics such as elevation and replacement cost values.

Do I Need Flood Insurance? Talk To An Agent

It’s important to understand what a flood is and the risks it poses to your home or business. We hope this blog has given you some of that information. FEMA is another great resource with countless tools that can help guide you in the right direction. But if this is all a little overwhelming, or you’d rather not do the research yourself, feel free to get in touch with us to request a quote or speak to an agent. We’re happy to guide you through the process.

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Spring is right around the corner, bringing warmer weather, blooming flowers—and a higher risk of flooding. As winter thaws, homeowners and business owners should consider how to protect their properties. Even if you’ve never experienced flooding before, the reality is that floods can happen anywhere. In fact, 99% of U.S. counties have experienced at least one flood event in the past 20 years, and over 40% of flood insurance claims come from properties outside high-risk flood zones​. Changing weather patterns make flooding more unpredictable than ever. That’s why having the right flood insurance policy in place is critical. 

How Spring Weather Increases Flood Risk 

Spring isn’t just about sunnier days—it’s also a prime season for flooding. Warmer temperatures and seasonal storms can create ideal conditions for high water. Here are a few reasons spring brings higher flood risk: 

• Snowmelt Flooding: Rising temperatures lead to rapid snowmelt, which can overwhelm drainage systems and waterways. Heavy spring rains falling on top of melting snowpack can quickly produce flash flooding​ in mountainous or northern regions; melting snow and ice jams can cause rivers to spill over their banks with little warning. 

• Heavy Spring Rains: Spring often brings frequent and intense rainstorms. After the winter, the ground may be saturated or frozen, reducing its ability to absorb water. Sudden downpours can trigger flash floods as water runs off into streets and low-lying areas faster than it can drain away. 

• Storm Surges & Rising Water Levels: Coastal areas aren’t off the hook in spring. Seasonal storms or late-season nor’easters can drive storm surges or unusually high tides. These events, combined with spring tide cycles and already high water tables, can push water inland. Even without a named storm, strong winds and changing currents in spring can cause rising water levels that inundate coastal properties. 

Spring weather can bring surprises even in regions that seem safe from floods. The bottom line: don’t assume you’re not at risk just because it hasn’t happened before. 

The Cost of Flooding Without Insurance 

Many people mistakenly assume their standard homeowners or business insurance policies cover flood damage—but that’s not the case. Typical property insurance excludes flooding, meaning that without a specific flood policy, you’d be paying out of pocket for any flood-related repairs or losses.  

For businesses, the stakes are equally high. A serious flood could force your business to shut down for weeks or even months, resulting in major financial losses from repairs and lost revenue. In fact, about 25% of businesses do not reopen after disasters like severe floods​. Without flood insurance, a single flood event could jeopardize your livelihood or even permanently close your doors.  

For homeowners, flooding can mean costly structural repairs, replacing ruined belongings, and even a drop in your property’s value – all out of pocket. In short, the financial impact of a flood can be devastating if you’re uninsured. 

How Flood Insurance Protects You 

Having flood insurance means you won’t have to bear the full brunt of flood damages on your own. A proper flood insurance policy provides a safety net by covering expenses that would otherwise come straight from your savings. Here’s how the right coverage protects you: 

• Structural Damage: Flood insurance helps pay for repairs to your home, office, or building caused by rising water. This includes the foundation, walls, electrical and plumbing systems, heating/cooling systems, and other structural elements that floodwaters might damage. Instead of financing a rebuild alone, your policy can help cover these significant costs. 

• Personal Property & Business Equipment: A flood policy can also cover the contents of your home or business. For homeowners, that means furniture, appliances, electronics, clothing, and other personal belongings that are destroyed by floodwater. For businesses, it can cover equipment, inventory, and supplies. This coverage ensures you can replace your valuables and get back on your feet faster after a flood. 

How to Get Flood Insurance 

If you’re ready to safeguard your property this spring, obtaining flood insurance is straightforward. These policies are available to homeowners, renters, and business owners – you don’t have to live in a designated high-risk flood zone to buy coverage. In fact, given the unpredictable nature of weather, everyone should evaluate their flood risk. 

By investing in flood insurance, you protect what matters most—your home, business, and financial stability. The peace of mind that comes with knowing you’re covered is invaluable, especially as spring’s unpredictable weather approaches. Don’t wait until it’s too late to realize you need coverage. Contact an agent today to explore the flood insurance options available to you. With the right policy in place, you can confidently welcome the warmer weather, knowing you’ve taken steps to stay one step ahead of spring’s flood risks.