Many homeowners assume their homeowners insurance will cover flood damage, but in reality, it often doesn’t. Flood insurance and homeowners insurance are two distinct policies that serve different purposes:
- Homeowners insurance protects against damages caused by fire, theft, windstorms, and other perils—but not flooding.
- Flood insurance covers water damage caused by natural flooding events like hurricanes, storm surges, or excessive rain.
This guide will compare flood insurance vs. homeowners insurance, their costs, coverage, and which one is best for your needs.
What is Homeowners Insurance?
Homeowners insurance is a comprehensive policy that protects your home and personal belongings from common risks.
What Does Homeowners Insurance Cover?
✅ Fire and smoke damage
✅ Windstorms and hail
✅ Theft and vandalism
✅ Explosions, riots, and falling objects
✅ Personal liability (if someone is injured on your property)
✅ Additional living expenses (if your home is unlivable after damage)
What Homeowners Insurance Does NOT Cover
❌ Flood damage from natural disasters
❌ Earthquakes (requires separate coverage)
❌ Sewer backups (unless you add an endorsement)
❌ Wear and tear or neglect
Homeowners Insurance Cost Breakdown
| Home Value | Average Annual Premium |
|---|---|
| $150,000 | $1,000 – $1,500 |
| $300,000 | $1,500 – $2,500 |
| $500,000+ | $2,500+ |
What is Flood Insurance?
Flood insurance is a separate policy that protects homes from water damage caused by flooding events.
What Does Flood Insurance Cover?
✅ Damage from rising water or storm surges
✅ Structural damage (foundation, walls, electrical systems)
✅ Damage to built-in appliances (water heaters, furnaces)
✅ Flooring, carpeting, and built-in furniture
✅ Personal belongings (if covered under contents policy)
What Flood Insurance Does NOT Cover
❌ Temporary housing costs (most policies don’t cover living expenses)
❌ Sewer backups (unless directly caused by flooding)
❌ Landscaping or outdoor property (decks, patios, fences)
❌ Cars or vehicles (covered under auto insurance)
Flood Insurance Cost Breakdown
| Home Location | Average Annual Premium |
| Low-Risk Zone | $400 – $700 |
| Moderate-Risk Zone | $700 – $1,500 |
| High-Risk Zone | $1,500 – $3,000+ |
Key Differences Between Homeowners & Flood Insurance
| Feature | Homeowners Insurance | Flood Insurance |
| Covers Water Damage | Only from pipe leaks or rain | Only from floods & storm surges |
| Covers Personal Belongings | ✅ | ✅ (If contents policy is included) |
| Covers Temporary Housing Costs | ✅ | ❌ (Most policies don’t) |
| Required by Mortgage Lenders | ✅ | ✅ (If in a high-risk zone) |
| Covers Sewer Backups | ❌ (Requires add-on) | ❌ |
| Average Annual Cost | $1,000 – $2,500 | $400 – $3,000+ |
Do You Need Homeowners Insurance, Flood Insurance, or Both?
Who Needs Homeowners Insurance?
- Homeowners looking for general protection from common risks.
- Mortgage borrowers (homeowners insurance is usually required).
- Homeowners who want liability coverage for accidents on their property.
Who Needs Flood Insurance?
- Homeowners in high-risk flood zones (often required by mortgage lenders).
- People living in coastal or hurricane-prone areas.
- Homeowners with low-lying properties near lakes, rivers, or flood-prone regions.
Who Needs Both?
- Anyone living in moderate- to high-risk flood zones.
- Homeowners who want comprehensive protection from all types of damage.
- People looking to avoid financial devastation after a natural disaster.
How to Choose the Right Insurance Policy
Choosing Homeowners Insurance
- Compare coverage limits and deductibles.
- Ensure it covers replacement costs for home and belongings.
- Consider endorsements for sewer backup or additional coverage.
Choosing Flood Insurance
- Determine if your home is in a flood-prone area.
- Choose between National Flood Insurance Program (NFIP) or private insurance.
- Compare building and contents coverage options.
FAQs & Final Thoughts
FAQs
1. Does homeowners insurance cover flood damage?
No, standard homeowners insurance does not cover flood damage. You need a separate flood insurance policy.
2. Can I get flood insurance if I don’t live in a high-risk zone?
Yes! Flood insurance is available to everyone, and premiums are often lower in low-risk areas.
3. How do I know if I need flood insurance?
Check FEMA’s flood zone maps or ask your insurance provider if you’re in a flood-prone area.
Final Thoughts
- Homeowners insurance covers common perils like fire, theft, and wind but does NOT cover flooding.
- Flood insurance covers water damage from natural disasters and is essential for high-risk areas.
- Many homeowners need both policies for full financial protection.
Want to protect your home? Get a free flood insurance quote today!
