Flood Insurance Basics Every Homeowner Should Know

Most homeowners are surprised to learn that standard homeowners insurance does NOT cover flood damage. With flooding becoming more frequent across the United States, understanding the basics of flood insurance is more important than ever. At Holt Flood Insurance, we help homeowners stay informed and properly protected.

Whether you’re buying your first home or reviewing your current coverage, here are the flood insurance essentials all homeowners should know.

1. What Flood Insurance Actually Covers

Flood insurance protects your home and belongings from water damage caused by natural flooding events — not plumbing issues or accidental leaks.

A “flood” is defined as:

Water covering two or more acres of normally dry land, or affecting two or more properties, caused by:

• Heavy rain

• Storm surge

• Overflowing rivers or lakes

• Snowmelt

• Blocked drainage or mudflow

Flood insurance comes in two main parts:

Building Coverage

Covers the structure of your home, including:

• Foundation, walls, and flooring

• Electrical and plumbing systems

• HVAC equipment

• Built-in appliances

• Major structural components

Contents Coverage

Protects your belongings, such as:

• Furniture and clothing

• Electronics

• Washer/dryer

• Personal valuables (with limits)

2. Flood Insurance Isn’t Just for High-Risk Areas

About 25% of flood claims come from properties in low- or moderate-risk zones. Even if your home isn’t in a designated high-risk area, you can still experience flooding from:

• Heavy storms

• Sewer backups caused by flooding

• Unexpected weather events

• Rapid snowmelt

Premiums are often much more affordable in low-risk zones, making early protection a smart choice.

3. NFIP vs. Private Flood Insurance

Homeowners usually have two options:

NFIP (National Flood Insurance Program)

• Government-backed

• Standardized rates

• Up to $250k building / $100k contents

Private Flood Insurance

• Offered by private carriers

• Often higher coverage limits

• May include additional benefits like temporary living expenses

• Sometimes lower premiums

Holt Flood Insurance can compare both types to see which fits your needs and budget best.

4. Flood Insurance Has a Waiting Period

Most flood policies include a waiting period before coverage starts:

• NFIP: Standard 30-day waiting period

• Private: Often shorter (sometimes 10–15 days)

This means you can’t buy flood insurance right before a storm and expect immediate protection. Planning ahead ensures you stay covered when it matters most.

5. Mortgage Lenders May Require It

If your home is in a high-risk (Special Flood Hazard Area) and your mortgage is federally backed, your lender will likely require flood insurance.

Even if it’s not required, many homeowners choose it for peace of mind — especially as weather patterns become more unpredictable.

6. What Isn’t Covered

Understanding exclusions helps avoid surprises. Typical flood policies do not cover:

• Damage from gradual moisture or mold not caused by flooding

• Basement improvements like finished walls or flooring

• Temporary living expenses (unless part of a private plan)

• Vehicles

• Earth movement not caused by flood (e.g., earthquakes)

When something isn’t covered, Holt Flood Insurance can help identify additional options or supplemental policies.

7. Your Flood Zone Affects Your Rates

FEMA assigns each property a flood zone based on its risk level. High-risk zones often have higher costs, while low-risk zones enjoy more affordable premiums.

However, new rating systems — like the NFIP’s Risk Rating 2.0 — focus more on individual property characteristics than broad zones. This means your home’s elevation, foundation type, and distance to water all influence your rate.

How Holt Flood Insurance Helps Homeowners Stay Protected

Flood insurance can be confusing, but you don’t have to figure it out alone. At Holt Flood Insurance, we:

• Compare NFIP and private flood options

• Help you understand your home's flood risk

• Look for discounts or cost-saving opportunities

• Provide quick, accurate quotes

• Explain coverage in simple, clear terms

Our goal is to make flood protection straightforward — so you can focus on enjoying your home with confidence.

Get Your Flood Insurance Quote Today

Understanding the basics is the first step toward protecting your most valuable investment. Whether you're buying a new home or reviewing your existing coverage, Holt Flood Insurance is here to help.

Contact us today for a personalized flood insurance quote.