What is a Flood?

The NFIP defines a flood as: “A general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow.” While flooding more frequently occurs along rivers, lakes, and streams, it also occurs in coastal areas. But as we’ve seen across the U.S., it also can occur as the result of a large amount of rain or snow, even to properties not in a flood zone.


Just because you haven’t experienced a flood in the past, doesn’t mean you won’t in the future. The reality is a flood can happen to anyone, anywhere, at any time. Common flood causes include rainfall, river flow, tidal surges, topography, flood-control measures, and changes to the landscape due to building and development.

Did you know…

  • Floods are the number one disaster in the United States
    More than 20% of all flood insurance claims come from areas in low- to moderate-risk flood zones
  • Just one inch of water can cause thousands of dollars in damage
  • The reality is everyone lives or works in a flood zone
  • Most standard home insurance policies and business property insurance policies do not cover flood insurance

Personal Flood Insurance

The market for flood insurance has evolved due to changes within the NFIP, flood reform, and climate change – to name a few.
Flood Insurance can be obtained in two ways:

National Flood Insurance Program (NFIP)

Private Flood Insurance Programs

We partner with the best in flood insurance carriers, both NFIP and private, who have innovative products to support our residential and commercial clients. We are committed to helping you protect what matters most. 

To help you understand the different degrees of flood risk in your community, click here to view your local flood maps.

FEMA’s new Risk Rating 2.0 (RR 2.0)

FEMA’s new Risk Rating 2.0 (RR 2.0) has been the biggest change in the National Flood Insurance Program (NFIP) since it began. Risk Rating 2.0 is a new pricing methodology from FEMA for flood risk. It is designed to better reflect a property’s unique flood risk while also providing rates that are easier for agents and policyholders to understand. To make the changes more equitable, FEMA will look at a property’s true risk based on flood frequency, flood types, and distance to water.

Customer Impact

  • According to FEMA, flood policyholders see an average premium increase of $8 per month under the current rating methodology. Risk Rating 2.0 accounts for several additional risk factors, which allows for premiums that are better aligned with the unique needs of the customer.
  • FEMA estimates that approximately 66% of policyholders will see a $0-$10 per month increase in premium, with approximately 23% of policyholders seeing a decrease of $86 per month, on average. 7% of customers may see an increase of $10 – $20 per month more and around 4% of premiums could go up by $20 or more.

Go to https://www.fema.gov/flood-insurance/risk-rating to learn more.

Typically, a flood insurance policy can take up to 30 days to go into effect, which means there is no better time than now to put coverage in place. Contact us today to learn more about how we can you help you protect what matters most.

Flood Insurance Coverages

An NFIP policy offers protection for both building and contents loss or damage. The maximum limits available through the NFIP, as currently authorized by Congress, are as follows:

CoverageNFIPPrivate Carriers
Maximum building coverageUp to $250,000Up to $5,000,000
Maximum contents coverageUp to $100,000Up to $1,000,000
Replacement cost for contentsNoYes
Waiting period after purchase30 daysNo
Loss of useNoYes
Can you pay in installmentsNoYes

*Coverage varies by carrier and are subject to change.

Excess Flood coverage is designed and available for residential owners who have the maximum amount of coverage available under the NFIP but need additional excess coverage to protect their higher-valued assets.

Personal Flood Insurance FAQs

The NFIP is a federal government program administered by the Federal Emergency Management Agency (FEMA). Private flood insurance, on the other hand, is written by private insurance carriers who are free to offer as much coverage as they want. Carriers may also include additional coverages, such as additional living expenses, which are not offered by the NFIP.

Private flood insurance is coverage with an insurance company as the risk taker meaning the company has ability to write its own policies and in some cases, offer broader coverage than the NFIP. While regulated, the private flood insurance market is not subject to the same terms and conditions as the NFIP.

No. While the NFIP was the only market for flood insurance just a few years ago, that’s no longer the case. Several insurance carriers have entered the market as risk takers, many of whom offer higher limits, additional coverages, and sometimes lower rates. To get the most bang for your buck, ask your agent to shop around for the best coverage for your needs and your hard-earned dollar.

Yes, per the Biggert-Waters Act, requires institutions to accept private flood insurance that meets both the statutory definition and the mandatory purchase requirement. A final rule, FIL-8-2019, effective July 1, 2019, established the framework for institutions to evaluate whether a flood insurance policy meets the statutory definition of private flood insurance. Please note, FHA loans are an exception although a proposed rule released in late 2020 means change may be forthcoming.

It depends. As with most insurance, there are a lot of factors that go into flood insurance rates including flood zone, elevation, distance to water, and more. Talk to your agent and ask them to shop around for the best rate, whether it be through the NFIP or a private insurance carrier.