When people buy a house, they want to protect it. That’s why they buy insurance. But many people don’t know that there are different types of insurance for different problems.
One of the most common mistakes people make is thinking homeowners insurance covers floods. It usually doesn’t! That’s why it’s important to understand the difference between flood insurance and homeowners insurance.
This guide will help you learn:
- What homeowners insurance covers
- What flood insurance covers
- Why both might be important
- How to decide which one you need
- Common questions people ask
Let’s break it down step by step in a way that’s easy to understand.
What Is Homeowners Insurance?
Homeowners insurance is a plan that protects your house and belongings from many types of damage.
When you buy a home, your bank or lender usually requires you to have homeowners insurance. It helps you pay to fix or rebuild your home if something bad happens.
What it usually covers:
- Fire and smoke damage
- Storm damage (wind, hail)
- Theft or vandalism
- Falling trees
- Damage from pipes that burst
- Someone getting hurt on your property (liability)
What it does NOT usually cover:
- Flooding from heavy rain or rising water
- Earthquakes
- Damage from neglect or poor maintenance
Important: Many people think “storm damage” means flood damage, but that’s not true. Homeowners insurance almost never covers water that comes from outside the house, like rainwater or a river.
What Is Flood Insurance?
Flood insurance is a special policy that protects your home and belongings if water from outside enters your house.
Floods can happen from:
- Heavy rain
- Overflowing rivers or lakes
- Hurricanes
- Storm surges
- Melting snow
- Blocked drainage systems
Even just a few inches of flood water can cost thousands of dollars in damage.
What flood insurance covers:
- Structure of your home (walls, floors, foundation)
- Electrical and plumbing systems
- Appliances like refrigerators and stoves
- Heating and cooling systems
- Belongings like clothes, furniture, and electronics
What it does NOT cover:
- Water damage from broken pipes (covered by homeowners insurance)
- Landscaping or swimming pools
- Cars (covered by car insurance if you have comprehensive coverage)
- Mold or mildew if caused by your own neglect
Key Differences: Side-by-Side Comparison
| Feature | Homeowners Insurance | Flood Insurance |
|---|---|---|
| Covers fire and smoke | ✅ Yes | ❌ No |
| Covers theft and vandalism | ✅ Yes | ❌ No |
| Covers flood damage | ❌ No | ✅ Yes |
| Required by mortgage lenders | ✅ Usually | ✅ Sometimes (if in flood zone) |
| Covers personal belongings | ✅ Yes | ✅ Yes (to a limit) |
| Covers broken pipes | ✅ Yes | ❌ No |
| Covers storm surge | ❌ No | ✅ Yes |
Why Doesn’t Homeowners Insurance Cover Floods?
Floods are very common and very expensive. That’s why most regular insurance plans don’t cover them. Insurance companies want to limit big risks, and floods can destroy homes completely.
Instead, the government offers flood insurance through the National Flood Insurance Program (NFIP). You can also buy private flood insurance from some companies.
How to Know If You Need Flood Insurance
Not everyone needs flood insurance—but many people do and don’t realize it. Even homes outside flood zones can flood.
You may need flood insurance if:
- You live near a river, lake, or ocean
- Your area gets heavy rain or hurricanes
- Your home is in a high-risk flood zone
- You live in a low area where water can collect
- Your mortgage lender requires it
How to check your risk:
- Ask your insurance agent
- Look at flood maps from FEMA (Federal Emergency Management Agency)
- Talk to neighbors—have they had flooding?
Tip: 1 in 4 flood claims come from people outside high-risk areas. So it’s not just coastal homes that are at risk.
What Happens If You Don’t Have Flood Insurance?
Let’s say there’s a flood and your house fills with water. If you don’t have flood insurance, your homeowners policy won’t help.
Without flood insurance:
- You pay out of pocket for repairs
- You may lose all your furniture and electronics
- You might need a loan to fix your home
- You could lose everything if the damage is too much
Flood repairs can cost $10,000 to $50,000 or more, even for small floods.
How Much Does Flood Insurance Cost?
Flood insurance prices depend on:
- Where you live
- Your home’s size and age
- Your flood zone level (high-risk vs. low-risk)
- The type of coverage you choose
Average yearly cost:
- Around $700 to $1,200 per year
- Higher if you live in a very risky area
Private flood insurance may be more expensive but offer more coverage.
How Much Does Homeowners Insurance Cost?
It depends on:
- Your home’s value and location
- The size of your deductible (what you pay before insurance helps)
- The age of your home and roof
- Extra features like pools or fireplaces
Average yearly cost:
- Around $1,200 to $2,000 per year
Many people pay both types of insurance, especially in risky areas.
What Is the NFIP (National Flood Insurance Program)?
The NFIP is a program from the U.S. government that offers flood insurance. It helps people in flood-prone areas protect their homes.
Key facts:
- Managed by FEMA
- Available to people in participating communities
- Has limits on how much it will pay (usually up to $250,000 for home, $100,000 for belongings)
- You can buy it through regular insurance companies
What If I Rent My Home?
Renters don’t need insurance for the building itself. But you still want to protect your stuff.
You should consider:
- Renters insurance (covers fire, theft, and more)
- Flood insurance for contents only (protects your things from flood damage)
Tip: Ask your landlord what their insurance covers. Most only insure the building—not your stuff.
How to Buy Flood Insurance
You can’t buy flood insurance just anywhere. But it’s still pretty easy.
How to get started:
- Contact your current insurance company.
- Ask if they offer flood insurance or can refer you.
- If they don’t, search for a private flood insurance provider or visit FloodSmart.gov.
Wait Time: NFIP policies take 30 days to start. Don’t wait until a storm is coming!
How to File a Claim (Flood vs. Homeowners)
The steps are similar, but the coverage depends on what type of insurance you have.
If you have flood damage:
- Contact your flood insurance provider.
- Take photos of the damage.
- List what was ruined.
- An adjuster will visit to inspect.
- You’ll get payment for repairs (up to your policy limit).
If you have other types of damage (fire, theft, etc.):
- Call your homeowners insurance company.
- Provide proof (photos, receipts).
- Follow their instructions.
- They’ll send a check or pay directly to repair companies.
Common Myths and Misunderstandings
❌ “My homeowners insurance covers floods.”
Truth: It usually does NOT.
❌ “Only people near rivers or oceans need flood insurance.”
Truth: Floods can happen anywhere it rains.
❌ “I can buy flood insurance right before a storm.”
Truth: Most policies have a 30-day waiting period.
❌ “Flood insurance is too expensive.”
Truth: It costs less than flood repairs.
❌ “If I rent, I don’t need insurance.”
Truth: Renters need insurance for their stuff, and sometimes flood insurance too.
Tips to Lower Costs
For homeowners insurance:
- Bundle with auto insurance
- Raise your deductible
- Install safety devices like smoke detectors
- Shop around for better rates
For flood insurance:
- Elevate your home or utilities
- Use flood-resistant materials
- Check for discounts in low-risk areas
- Reduce your coverage if you don’t need full protection
Who Needs Both?
Many people need both homeowners and flood insurance. If you live in a place that has storms, heavy rain, or is near water, you might want both.
Examples:
- Coastal towns (like Florida or Louisiana)
- River cities (like St. Louis or Cincinnati)
- Areas hit by hurricanes or tropical storms
- Places with sudden heavy rainfall
Real-Life Example: Sarah’s Story
Sarah lives in a quiet neighborhood far from any rivers. One summer, a huge rainstorm dropped 10 inches of rain in one day. Her basement flooded.
Her homeowners insurance didn’t cover any of the water damage. The repairs cost $25,000. She had to take out a loan to fix her floors, walls, and furniture.
After that, she bought flood insurance—just in case it happens again.
Summary: Key Takeaways
| Topic | Homeowners Insurance | Flood Insurance |
|---|---|---|
| Covers fire, theft, wind | ✅ Yes | ❌ No |
| Covers flood damage | ❌ No | ✅ Yes |
| Required by mortgage lender | ✅ Yes | ✅ Sometimes |
| Average yearly cost | $1,200–$2,000 | $700–$1,200 |
| Pays for structure damage | ✅ Yes | ✅ Yes |
| Pays for belongings | ✅ Yes | ✅ Yes (up to limits) |
| Available from private insurers | ✅ Yes | ✅ Yes (or via NFIP) |
Final Thoughts
Insurance can be confusing, but it doesn’t have to be. The most important thing to remember is:
Homeowners insurance and flood insurance are not the same.
If you want full protection, especially in 2025 when weather events are more common, it’s smart to look into both.
Here’s what to do next:
- Ask your parents or guardians what type of insurance your home has.
- Check if your home is in a flood zone.
- Talk to an insurance agent if you need help.
- Don’t wait until it’s too late—get the right coverage before disaster strikes.
