In 2019, the average flood claim payout from the National Flood Insurance Program was $52,000.
The financial loss that comes with flooding can be devastating. Yet, many Americans are not protected against flood damages, primarily because flooding is not covered under a standard homeowners policy.
Low vs. High Risk
Even if you are in a moderate-to-low-risk area—homes not residing within mapped high-risk flood plains—you could suffer flooding at some point. In fact, moderate-to-low-risk areas account for nearly 25% of all National Flood Insurance Program insurance claims and one-third of federal disaster assistance for flooding.
To protect yourself from the financial risks of flooding, you can consider purchasing insurance through the National Flood Insurance Program, which you can obtain through a local insurance agent. However, to be eligible, you will need to live in a community that participates in the program.
If you live in a moderate-to-low-risk area, you may qualify for coverage at a preferred rate, with building and contents coverage for one low price.
If you live in a high-risk area, the National Flood Insurance Program offers separate coverage for buildings and contents.
The cost of flood insurance depends on a number of factors, including the age of your home, the number of floors and the location of contents, your flood risk, and the deductible and level of coverage you choose, among other things.