What You Need to Know About Flood Insurance

What You Need to Know About Flood Insurance

In September 2022, Hurricane Ian struck Florida, causing notable flooding in several counties. Surprisingly, only a small percentage of homeowners in these areas had flood insurance. For instance, just 4% of single-family homes in Seminole County, 3% in Orange County, and 2% in Polk County were covered for flooding. The impact of this lack of coverage became evident during the hurricane, with reports of significant flooding, even in areas with low flood risk like Winter Springs, which reported over 2,000 affected buildings, yet the city had only around 525 active federal flood insurance policies. Wherever you are in Florida, flood insurance is always something to consider. Here is some essential information about flood insurance and why it shouldn’t be overlooked for your home.


Your Normal Insurance Does Not Cover Floor Damage 

Many homeowners often assume their standard homeowners insurance policy will provide coverage in the event of flooding. Unfortunately, that is not correct, as most standard home insurance policies explicitly exclude coverage for flood-related damage, specifically defined as damage caused by rising waters. To safeguard your home and belongings from the financial repercussions of a flooding event, it’s crucial to obtain a separate flood insurance policy. This specialized insurance coverage is designed to provide protection for both your home and personal possessions in the unfortunate event of damage caused by rising water, offering peace of mind and financial security in the face of such natural disasters.


Where Can You Purchase Flood Insurance?

Flood insurance is made accessible through the National Flood Insurance Program (NFIP). Administered by the Flood Emergency Management Agency (FEMA), NFIP was established with the primary goal of offering affordable flood insurance to residents residing in areas prone to frequent flooding. The standard NFIP policy offers essential coverage for flood-related damage. It includes up to $250,000 for structural damage and up to $100,000 for personal possessions. It’s vital to note that flood insurance specifically covers damage from rising waters, not other causes like leakage or wind-driven rain damage. For comprehensive protection, homeowners should consider additional coverage options from private insurance companies.


What if You Live in a Low-Risk Flood Zone?

Flood insurance requirements in Florida predominantly focus on high-risk flood zones, but a surprising statistic reveals that roughly 25 percent of flood insurance claims processed annually pertain to properties situated outside these designated high-risk areas. This discrepancy can be attributed to several factors.


  1. Many flood maps used to delineate these risk zones are outdated, failing to accurately depict the evolving landscape and the consequences of climate change. So properties that may not have been deemed high-risk in the past are increasingly susceptible to flooding due to shifting weather patterns.
  2. The frequency of extreme rainfall events is on the rise, leading to flooding even in areas historically considered low risk. The changing climate has intensified the occurrence of heavy rainfall, further blurring the distinction between high and low-risk zones. 
  3. FEMA plays a pivotal role in designating flood zones, with a particular emphasis on high-risk areas characterized by a 1 percent or greater annual flood risk. Despite the seemingly low level of risk, given that most mortgages extend over 30 years, the probability of encountering a flood event during the mortgage’s lifespan becomes a substantial concern, approaching nearly one in three homeowners.


Homeowners residing outside high-risk zones often find that flood insurance is significantly less expensive, making it a wise investment even when not mandated.


Do Not Rely on Federal Aid for Flooding

Federal disaster aid is often seen as a safety net for those affected by floods. However, it’s important to note that this aid is not automatically available after every flood. To become eligible for federal assistance, the flooding event must reach a specific level of severity, typically requiring a presidential declaration of a federal disaster. Such declarations are relatively rare and are usually reserved for the most catastrophic flood events. This means that many flood incidents, especially those of a smaller scale or in less densely populated areas, do not meet the criteria for federal aid. As a result, relying solely on the expectation of federal assistance in the aftermath of a flood can leave homeowners and property owners in a vulnerable financial position. This emphasizes the crucial need for proactive flood insurance coverage, ensuring comprehensive protection against the financial impact of floods, regardless of their scale or severity.



Florida, with its vast population of nearly 21 million people, has a lot of homes that could be at risk from flooding. It’s not just the coastal properties; even homes further inland can face this danger. The average height of land above sea level is just 6 feet across the state, putting almost every home in Florida in the path of potential floods. Relying solely on the classification of a low-risk flood zone and the hope of federal aid in the event of a flood may ultimately prove to be a costly gamble. This is why purchasing flood insurance is crucial for all homeowners in Florida. It provides essential financial protection for your home and belongings, no matter where you live in the state, giving you peace of mind against this constant threat.

Talk To An Agent

We promise not to sell or share your contact information with anyone else. 

Request a Professional Home Valuation

We promise not to sell or share your contact information, but we may need to ask you questions before we can finalize the value for your house.