Can You Get Flood Insurance If You Are Not in a Flood Zone?

Many homeowners believe that flood insurance is only necessary if you live in a high-risk flood zone, but this is a common misconception. In fact, flood insurance is available—and highly recommended—even for those outside of designated flood zones. Here's what you need to know about purchasing flood insurance, whether or not your home is in a flood zone.

Understanding Flood Zones

Flood zones are areas categorized based on their risk of flooding, determined by flood maps from the Federal Emergency Management Agency (FEMA). These maps divide land into categories ranging from low to high risk. If you live in a high-risk flood area, which is often labeled as a Special Flood Hazard Area (SFHA), your mortgage lender may require you to purchase flood insurance.

But even outside these high-risk areas, floods can and do happen. FEMA reports that 20% of flood claims come from properties outside of high-risk flood zones. This means that even if you don’t live in an SFHA, you still face the risk of flood damage, and your homeowners insurance will not cover it. Only a flood insurance policy will pay for flood-related losses.

Who Needs Flood Insurance?

Anyone who wants to protect their home and personal property from flood damage should consider buying flood insurance. Floods can be caused by heavy rainfall, storm surges, clogged drainage systems, or rapid snowmelt. You don’t need to be near a river or coastline to experience significant water damage.

The National Flood Insurance Program (NFIP) encourages homeowners in moderate-to-low risk areas to secure flood insurance for their peace of mind. The cost of flood insurance outside of a high-risk flood area is typically much lower, making it a wise investment in safeguarding your home. The NFIP makes flood insurance available to anyone living in a community that participates in the program, even if they are not in a flood zone.

How Much Does Flood Insurance Cost in Low-Risk Areas?

If you're not in a high-risk flood zone, the cost of flood insurance is generally lower. Policies outside of high-risk zones can be purchased at a preferred rate through the National Flood Insurance Program (NFIP). These rates are more affordable because the risk of flooding is lower. The exact cost will vary based on factors such as your home’s location, age, and elevation, but many homeowners in low-risk areas find that flood insurance costs just a few hundred dollars per year.

To get an accurate quote, reach out to your insurance agent who can assess your property and help you navigate the purchasing process.

What Does Flood Insurance Cover?

Flood insurance covers two primary areas:

1. Building Property Coverage: This includes the structure of your home, foundation, electrical and plumbing systems, appliances, and more.
2. Personal Property Coverage: This protects your personal belongings, such as furniture, electronics, and clothing, from flood damage.

It's essential to review your policy with an insurance professional to understand exactly what is covered and what isn't. For instance, flood insurance policies typically do not cover damages to basements or landscaping. Make sure you’re aware of any 30-day waiting period before the policy takes effect, so plan ahead, especially before the rainy season.

How to Purchase Flood Insurance

Flood insurance is offered through the National Flood Insurance Program (NFIP), which is managed by FEMA, as well as through some private insurance companies. You can purchase it whether you live in a high-risk zone or not, as long as your community participates in the NFIP. Most towns and cities do participate, but it’s always best to confirm with your insurance agent.

If you’re considering flood insurance, the best place to start is by checking your flood risk on FEMA’s flood maps. These maps show you whether you’re in a high-risk area or not and can guide your decision-making process. Even if you're in a low-risk area, you can still buy flood insurance, and it’s often at a reduced rate.

Why You Shouldn’t Rely on Homeowners Insurance

Many homeowners mistakenly assume their homeowners insurance will cover flood damage. Unfortunately, this is not the case. Standard homeowners insurance does not cover flooding. To cover flood damage, you need a separate flood insurance policy. The National Flood Insurance Program (NFIP) is designed to bridge this gap and provide homeowners with protection from one of the most common and costly natural disasters.

Peace of Mind and Protection

Ultimately, purchasing flood insurance is about peace of mind. With the unpredictability of severe weather and the increasing frequency of floods due to climate change, it's important to be prepared. Floods can happen anywhere—you don’t have to live near a coast or in a high-risk area. Investing in flood insurance, even outside of a flood zone, ensures that you’re financially protected if the worst happens.

Key Takeaways

• Flood insurance is available to homeowners both in and outside of flood zones.
• FEMA’s National Flood Insurance Program (NFIP) offers affordable rates for those in moderate-to-low-risk areas.
• Homeowners insurance does not cover flood damage; only a separate flood insurance policy can.
• Consider purchasing flood insurance for peace of mind and protection from unexpected floods.

Don’t wait until it’s too late—contact your insurance company or agent today to discuss buying flood insurance, regardless of your flood zone.