4 Surprising Facts About Flood Insurance

March 24, 2025

Flood insurance is often misunderstood, yet crucial for protecting your home from devastating water damage. As climate change increases the frequency and severity of storms, understanding flood insurance becomes more important. In this post, we explore four surprising facts about flood insurance that every homeowner should know.


1. Understand That Standard Home Insurance Doesn't Cover Flood Damage

Many homeowners assume their standard home insurance policies include flood coverage, but this isn't the case. In fact, 53% of homeowners don't realize that flood damage is not covered by standard home insurance policies, according to Policygenius. It is important to purchase a separate flood insurance policy to protect your home from flood-related losses.


2. Understand That Flood Insurance Is Supported by the Government

Unlike other insurance types, flood insurance often involves the government as a backer. The National Flood Insurance Program (NFIP), managed by the Federal Emergency Management Agency (FEMA), provides the majority of flood coverage in the United States. This means that premiums for flood insurance offered under the NFIP are often standardized, making the cost predictable across the board.


3. Consider How Flood Zones Aren't Always Accurate Predictors

Flood zones are used to predict the likelihood of flooding in particular areas, yet they aren't always accurate. Changes in climate, urban development, and local infrastructure can alter flood risk significantly. As a result, even homes outside of designated flood zones can suffer flood damage, making it crucial for all homeowners to consider flood insurance.


4. Consider Flood Insurance a Smart Investment

Many homeowners view flood insurance as an unnecessary expense, especially if they live outside high-risk flood zones. However, investing in a policy can provide financial security and peace of mind. Flooding is the most common and costly natural disaster in the U.S., and just a few inches of water can lead to thousands of dollars in damage.


In the wake of rising global temperatures and unpredictable weather patterns, understanding flood insurance is more essential than ever. Many assume their homes are covered by standard policies, or mistake the security of flood zones, putting them at risk for substantial financial loss. Being informed about the intricacies of flood insurance, such as its federal backing and policy limitations, ensures you won't be caught off-guard should disaster strike. If you're looking for flood insurance to cover your home in the event of a disaster, contact Spirit Insurance today. Our team has been a trusted name in the industry since 1990 and cannot wait to assist you.

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