Latest news with #floodinsurance
Forbes
5 days ago
- Climate
- Forbes
Do You Really Need Flood Insurance? Here's How To Know
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Floods are becoming increasingly common throughout the nation, unexpectedly weaving into our lives and wrecking homes. Standard homeowners insurance usually doesn't cover flood damage, leaving many without financial protection when disaster strikes. To protect your beloved home, it is crucial to look into different options. Whether you need flood insurance depends largely on where you live and your risk of flooding. Flood Zones Are a Starting Point, But Not the Whole Story Floods don't just happen in coastal towns or during hurricane season—they can hit almost anywhere. This is where FEMA's flood maps come to rescue. These government-issued maps show which areas are most at risk, often near rivers, lakes or in low-lying spots. If you have a mortgage and live in a high-risk zone, flood insurance is usually required. But many flood claims come from areas FEMA labels as low or moderate risk. This means people living outside of red zones are vulnerable, too, and could benefit from flood insurance coverage. Climate Change Is Shaking Things Up Climate change is making storms stronger, rainfalls heavier and sea levels rise, causing floods in places that didn't see them before or as often. Recent floods in Kentucky and Tennessee, or flooding in parts of New York and New Jersey back in 2023 and 2024, are not isolated anomalies. They reflect a broader, ongoing pattern. If your house sits near water or in a low-lying area, it's more likely to flood. Even a few feet of elevation can help a lot. FEMA's flood maps consider elevation to determine risk: Zones like 'A' or 'AE' indicate high risk, while 'X' zones are lower risk. Sometimes, raising your home or adding barriers can reduce your risk. Places like Louisiana, Texas, Florida and California flood fairly regularly. But flooding isn't just a coastal problem—inland spots in the Midwest and Mid-Atlantic have seen major floods in recent years, too. If you live near a river, lake or in a city prone to heavy storms, it's worth double-checking your flood risk. How To Know If You Need Flood Insurance Look up your address on FEMA's flood map website. Check if your mortgage lender requires flood insurance. Think about how close you are to water or low ground. Consider how comfortable you are taking the risk, as flood damage can become expensive fast. FEMA recommends using this RISK acronym to stay alert: R: Reduce your risk. I: Insure your risk. S: Share information on risk. K: Know your risk and your community's risk. Which Insurance Should I Choose? Most standard homeowners insurance policies don't cover flood damage. As floods increasingly strike in unexpected areas, it's more important than ever to consider flood insurance . There are two main ways to get coverage: through FEMA's National Flood Insurance Program (NFIP) or from private insurers. Homeowners in communities that participate in the NFIP are eligible to enroll. Private insurers, however, can deny coverage, particularly in high-risk zones. In those cases, the NFIP may be the only available option. Generally, the federal program offers up to $250,000 for dwelling coverage and up to $100,000 for home contents . Flood insurance might not be top of mind for everyone, but it's often the difference between a manageable setback and a financial nightmare. Even if you don't live in a flood zone, it's worth thinking about, especially as floods become more unpredictable and widespread.
Bloomberg
09-07-2025
- Climate
- Bloomberg
Few Texas Homeowners Hit by Extreme Rains Have Flood Insurance
The narrow canyons and shallow soils in the central Texas area pummeled by recent storms long ago earned it the nickname of 'Flash Flood Alley.' Yet only a fraction of homeowners there have flood insurance, data show. In Kerr County, where the Guadalupe River swelled, killing more than 90 people, only 2% of homeowners hold federal flood insurance. In neighboring Kendall, another hard-hit county, that share is less than 5%.
The Independent
09-07-2025
- Business
- The Independent
What flood insurance does and does not cover
Though natural disasters cycle across seasons and regions in the U.S., it's often a shocking discovery for property owners how expansive and expensive flood and water damage can be when a major storm devastates their homes, businesses and communities. That's because oftentimes insurance doesn't cover what the policyholder thinks it does — or thinks it should. The disappointing surprise is that while the standard home insurance policy does cover fire and wind damage, even good property insurance typically doesn't cover things like flooding and earthquakes, which usually require a special and separate policy for each. Here are the things to know about flood insurance. Who has flood insurance Most people who have flood insurance are required to have it. Although many property owners have the option of purchasing flood insurance, it is mandated for government-backed mortgages that sit in areas that the Federal Emergency Management Agency deems highest risk. Many banks require it in high-risk zones, too. But most private insurance companies don't carry flood insurance, leaving the National Flood Insurance Program run by FEMA as the primary provider. Congress created the federal flood insurance program more than 50 years ago when many private insurers stopped offering policies in high-risk areas. FEMA's Flood Map Service Center has an online tool to check your area. FEMA notes even a 1% chance of flooding is considered high risk because it amounts to a 1-in-4 chance of flooding over the life of a 30-year mortgage. Who doesn't have flood insurance Homeowners in high-risk areas who should have it sometimes decide not to get it. Someone who pays off their mortgage can drop their flood insurance once it's not required. Or if they purchase a house or mobile home with cash, they may not opt for it at all. The rest of us are just rolling the dice, even though experts have long warned that flooding can happen just about anywhere because flood damage isn't just water surging and seeping into the land — it's also water from banks, as well as mudflow and torrential rains. Mark Friedlander, spokesman for the Insurance Information Institute, an industry group, said only about 6% of U.S. households have a flood policy — primarily in the costal areas prone to hurricanes. That rate has remained steady in recent years despite the increasing frequency of severe flooding events, including in areas that are not formally considered by the government to be high risk. 'Lack of flood coverage is the largest insurance gap across the country,' Friedlander said in an email. 'Ninety percent of U.S. natural disasters involve flooding and flooding can occur just about anywhere it rains.' What flood insurance covers Even if a homeowner does have flood insurance, the coverage may not be enough to make a policyholder whole again. FEMA's National Flood Insurance Program only covers up to $250,000 for single-family homes and $100,000 for contents. Renters can get up to $100,000 for contents, and commercial flood insurance will cover up to $500,000. There are concerns that such flooding coverage limits are not robust enough, especially at a time when climate change is making strong hurricanes even stronger and making storms in general wetter, slower and more prone to intensifying rapidly. And what typically happens to the people without flood insurance in a major storm is that they can try to recover some money from their standard home insurance but may end up in a fight to determine what damage is or isn't wind versus rain, or even 'wind-driven rain.' Don Hornstein, an insurance law expert at the University of North Carolina, said the line between wind and water is a thin but very clear line that technical experts can determine. Should there be a proverbial tie, the law favors the insurance company. 'If the house was simultaneously destroyed by flood and, concurrently (by) wind, it's not covered by private insurance,' Hornstein said.
Yahoo
09-07-2025
- Business
- Yahoo
What flood insurance does and does not cover
SEATTLE (AP) — Though natural disasters cycle across seasons and regions in the U.S., it's often a shocking discovery for property owners how expansive and expensive flood and water damage can be when a major storm devastates their homes, businesses and communities. That's because oftentimes insurance doesn't cover what the policyholder thinks it does — or thinks it should. The disappointing surprise is that while the standard home insurance policy does cover fire and wind damage, even good property insurance typically doesn't cover things like flooding and earthquakes, which usually require a special and separate policy for each. Here are the things to know about flood insurance. Who has flood insurance Most people who have flood insurance are required to have it. Although many property owners have the option of purchasing flood insurance, it is mandated for government-backed mortgages that sit in areas that the Federal Emergency Management Agency deems highest risk. Many banks require it in high-risk zones, too. But most private insurance companies don't carry flood insurance, leaving the National Flood Insurance Program run by FEMA as the primary provider. Congress created the federal flood insurance program more than 50 years ago when many private insurers stopped offering policies in high-risk areas. FEMA's Flood Map Service Center has an online tool to check your area. FEMA notes even a 1% chance of flooding is considered high risk because it amounts to a 1-in-4 chance of flooding over the life of a 30-year mortgage. Who doesn't have flood insurance Homeowners in high-risk areas who should have it sometimes decide not to get it. Someone who pays off their mortgage can drop their flood insurance once it's not required. Or if they purchase a house or mobile home with cash, they may not opt for it at all. The rest of us are just rolling the dice, even though experts have long warned that flooding can happen just about anywhere because flood damage isn't just water surging and seeping into the land — it's also water from banks, as well as mudflow and torrential rains. Mark Friedlander, spokesman for the Insurance Information Institute, an industry group, said only about 6% of U.S. households have a flood policy — primarily in the costal areas prone to hurricanes. That rate has remained steady in recent years despite the increasing frequency of severe flooding events, including in areas that are not formally considered by the government to be high risk. 'Lack of flood coverage is the largest insurance gap across the country,' Friedlander said in an email. 'Ninety percent of U.S. natural disasters involve flooding and flooding can occur just about anywhere it rains.' What flood insurance covers Even if a homeowner does have flood insurance, the coverage may not be enough to make a policyholder whole again. FEMA's National Flood Insurance Program only covers up to $250,000 for single-family homes and $100,000 for contents. Renters can get up to $100,000 for contents, and commercial flood insurance will cover up to $500,000. There are concerns that such flooding coverage limits are not robust enough, especially at a time when climate change is making strong hurricanes even stronger and making storms in general wetter, slower and more prone to intensifying rapidly. And what typically happens to the people without flood insurance in a major storm is that they can try to recover some money from their standard home insurance but may end up in a fight to determine what damage is or isn't wind versus rain, or even 'wind-driven rain.' Don Hornstein, an insurance law expert at the University of North Carolina, said the line between wind and water is a thin but very clear line that technical experts can determine. Should there be a proverbial tie, the law favors the insurance company. 'If the house was simultaneously destroyed by flood and, concurrently (by) wind, it's not covered by private insurance,' Hornstein said. Sally Ho (), The Associated Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
09-07-2025
- Business
- Associated Press
What flood insurance does and does not cover
SEATTLE (AP) — Though natural disasters cycle across seasons and regions in the U.S., it's often a shocking discovery for property owners how expansive and expensive flood and water damage can be when a major storm devastates their homes, businesses and communities. That's because oftentimes insurance doesn't cover what the policyholder thinks it does — or thinks it should. The disappointing surprise is that while the standard home insurance policy does cover fire and wind damage, even good property insurance typically doesn't cover things like flooding and earthquakes, which usually require a special and separate policy for each. Here are the things to know about flood insurance. Who has flood insurance Most people who have flood insurance are required to have it. Although many property owners have the option of purchasing flood insurance, it is mandated for government-backed mortgages that sit in areas that the Federal Emergency Management Agency deems highest risk. Many banks require it in high-risk zones, too. But most private insurance companies don't carry flood insurance, leaving the National Flood Insurance Program run by FEMA as the primary provider. Congress created the federal flood insurance program more than 50 years ago when many private insurers stopped offering policies in high-risk areas. FEMA's Flood Map Service Center has an online tool to check your area. FEMA notes even a 1% chance of flooding is considered high risk because it amounts to a 1-in-4 chance of flooding over the life of a 30-year mortgage. Who doesn't have flood insurance Homeowners in high-risk areas who should have it sometimes decide not to get it. Someone who pays off their mortgage can drop their flood insurance once it's not required. Or if they purchase a house or mobile home with cash, they may not opt for it at all. The rest of us are just rolling the dice, even though experts have long warned that flooding can happen just about anywhere because flood damage isn't just water surging and seeping into the land — it's also water from banks, as well as mudflow and torrential rains. Mark Friedlander, spokesman for the Insurance Information Institute, an industry group, said only about 6% of U.S. households have a flood policy — primarily in the costal areas prone to hurricanes. That rate has remained steady in recent years despite the increasing frequency of severe flooding events, including in areas that are not formally considered by the government to be high risk. 'Lack of flood coverage is the largest insurance gap across the country,' Friedlander said in an email. 'Ninety percent of U.S. natural disasters involve flooding and flooding can occur just about anywhere it rains.' What flood insurance covers Even if a homeowner does have flood insurance, the coverage may not be enough to make a policyholder whole again. FEMA's National Flood Insurance Program only covers up to $250,000 for single-family homes and $100,000 for contents. Renters can get up to $100,000 for contents, and commercial flood insurance will cover up to $500,000. There are concerns that such flooding coverage limits are not robust enough, especially at a time when climate change is making strong hurricanes even stronger and making storms in general wetter, slower and more prone to intensifying rapidly. And what typically happens to the people without flood insurance in a major storm is that they can try to recover some money from their standard home insurance but may end up in a fight to determine what damage is or isn't wind versus rain, or even 'wind-driven rain.' Don Hornstein, an insurance law expert at the University of North Carolina, said the line between wind and water is a thin but very clear line that technical experts can determine. Should there be a proverbial tie, the law favors the insurance company. 'If the house was simultaneously destroyed by flood and, concurrently (by) wind, it's not covered by private insurance,' Hornstein said.
