Homeowners insurance covers sudden, accidental water damage that starts inside or above the house, such as a burst pipe or rain coming through a storm-damaged roof, but it excludes flooding. Flood insurance, sold through the National Flood Insurance Program (NFIP) or private insurers, covers water that rises from outside, such as an overflowing river or heavy rainfall runoff. NFIP policies cap building coverage at $250,000 and contents at $100,000, usually take effect 30 days after purchase, and cover very little in a basement.
The core difference: where the water came from
The Insurance Information Institute puts it simply. Water that comes from the top down, such as rainfall and burst sprinklers, is generally covered by a standard homeowners policy. Water that comes from the bottom up, such as an overflowing river, is covered by a separate flood policy. Homeowners policies also cover burst pipes, wind-driven rain and damage from ice dams.
Neither policy pays for damage from poor maintenance. The Insurance Information Institute says homeowners insurance does not cover damage due to a lack of maintenance or mold, and a slow leak ignored for months is treated that way.
| Situation | Homeowners policy | NFIP flood policy |
|---|---|---|
| Burst or frozen pipe inside the house | Usually covered (sudden and accidental) | Not a flood |
| Rain through a roof damaged by wind | Usually covered | Not a flood |
| River, lake or coastal overflow | Excluded | Covered |
| Heavy rain runoff that floods the area | Excluded | Covered if it meets the NFIP flood definition |
| Sewer backup from a clogged line | Excluded unless you added an endorsement | Not covered |
| Sewer backup caused by area flooding | Excluded unless you added an endorsement | Covered |
| Slow leak or poor maintenance | Not covered | Not covered |
| Building coverage limit | Your dwelling limit | Up to $250,000 |
| Contents coverage limit | Your personal property limit | Up to $100,000, bought separately |
| Temporary housing while repairs happen | Check your policy | Not covered |
| Waiting period | Check your policy | Usually 30 days |
What counts as a flood
For flood insurance, "flood" has a specific meaning. FloodSmart.gov says the NFIP and FEMA define flooding as two or more acres of normally dry land, or two or more properties, partially or completely covered by water from overflowing inland or tidal waters, unusual and rapid surface water runoff, mudflows, or the collapse of land along a shore. Water in only your home, from a source only your home has, is usually a homeowners matter instead.
FloodSmart lists the common causes it covers: river, lake and coastal overflows, heavy or extended rainfall, spring snowmelt, changes to the land such as new construction, and water seeping through a dam or levee.
Water still spreading?
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NFIP limits and the 30-day wait
FloodSmart.gov gives the NFIP limits:
- homeowners: up to $250,000 for the building and up to $100,000 for contents
- renters: up to $100,000 for contents
- businesses: up to $500,000 each for building and contents
Building and contents are usually bought separately and carry separate deductibles. Building coverage includes electrical and plumbing systems, furnaces and water heaters, built-in appliances, permanently installed carpeting, cabinets and paneling, foundation walls and staircases, and detached garages. Contents coverage includes clothing, furniture, electronics, curtains, washers and dryers, portable or window air conditioners, and carpet installed over wood floors.
NFIP policies do not cover cash and valuable papers, most vehicles, property outside the building such as decks, fences, landscaping and pools, temporary housing during repairs, or business interruption.
The waiting period catches many people out. FloodSmart says coverage starts 30 days after purchase, with four exceptions: no wait if you buy it while making, increasing, extending or renewing a mortgage; no wait if you change coverage at renewal; a one-day wait if your property is newly mapped into a high-risk zone and you buy within 12 months; and a one-day wait for flooding caused or worsened by wildfire on federal land if you buy within 60 days of containment. Buying when a storm is already forecast is usually too late.
Basements: the biggest coverage gap
FEMA's basement fact sheet explains that NFIP basement coverage is limited. A basement, for NFIP purposes, is any area with a floor below ground level on all sides, which can include some sunken rooms and the lowest level of a split-level home.
In a basement, the policy covers specific building items and some cleanup. Covered examples include central air conditioners, furnaces and water heaters, sump pumps, well water tanks and pumps, fuel tanks, electrical outlets and switches, junction and breaker boxes, attached stairways, foundation elements, and drywall that is unfinished and untaped. Cleanup can include pumping out trapped floodwater, mold and mildew treatment, and structural drying of salvageable foundation elements.
If you bought contents coverage, only a few things stored in a basement are covered, and only if connected to power: clothes washers and dryers, portable or window air conditioners, and food freezers with the food in them.
The exclusions are where finished basements get hurt. FEMA lists personal property such as couches, computers and televisions, and basement improvements such as finished flooring, finished walls, bathroom fixtures and built-ins. The policy also does not pay to remove items that are not covered, even when removing them is needed to clean up covered areas, such as carpet installed in a basement. Read flooded basement: what to do for the first steps.
Private flood insurance
The Insurance Information Institute says flood coverage is also sold by many private insurers. In a 2023 Triple-I and Munich Re survey, 22 percent of homeowners said they were at risk of flooding. Of those, 78 percent had flood insurance, 35 percent through a private insurer and 43 percent through the NFIP.
Private policy terms vary by insurer. When comparing one with an NFIP quote, check the building and contents limits, what is covered in a basement, the waiting period, and whether temporary living costs are included.
Do you need flood insurance outside a high-risk zone?
FloodSmart says nearly one-third of NFIP claims over the past 10 years came from outside high-risk flood zones, and 99 percent of US counties had a flood in the past 20 years. It also notes that federal disaster assistance is not guaranteed and is only available after a presidential disaster declaration. The water damage risk index ranks US cities on rain, freeze risk and FEMA flood declarations.
After water gets in: which policy to call
If the water came from inside, such as a pipe, water heater or appliance, start with your homeowners insurer. If it came from outside rising water, call your flood insurer. After a storm, some homes have both, for example wind damage to a roof and flooding on the ground floor, and you may need two claims. Photograph everything before cleanup either way. Our guides on whether homeowners insurance covers water damage and water damage insurance claim tips cover the claim itself, and storm and flood damage explains the cleanup.
Water still spreading?
One free call connects you with a local restoration company. Lines are open 24/7 and there is no obligation.
Whichever policy applies, drying the house quickly limits the loss. One free call connects you with an independent local restoration company. Lines are open 24/7 and there is no obligation to hire.
Common questions
Does homeowners insurance cover flooding?
No. The Insurance Information Institute says flood damage is excluded under standard homeowners and renters policies. Flood coverage has to be bought as a separate policy from the National Flood Insurance Program or a private insurer.
How much does NFIP flood insurance cover?
FloodSmart.gov says NFIP homeowner policies cover up to $250,000 for the building and up to $100,000 for contents. Contents coverage is bought separately, and building and contents have separate deductibles. Commercial policies go up to $500,000 for each.
Is there a waiting period for flood insurance?
Yes. NFIP coverage usually starts 30 days after purchase. There is no wait if you buy it while making, increasing, extending or renewing a mortgage, or when you change coverage at renewal, and a one-day wait applies in two cases tied to new flood maps and wildfire-related flooding.
Does flood insurance cover basements?
Only partly. FEMA says NFIP basement coverage includes items like furnaces, water heaters, central air units, electrical panels and unfinished drywall, plus some cleanup. It does not cover finished walls or flooring, or personal property such as couches and electronics stored in a basement.
Does flood insurance cover sewer backup?
Only when flooding causes it. FloodSmart says an NFIP policy would cover a sewer backup during a heavy rainstorm flood, but not one caused by clogged pipes. For ordinary backups, the Insurance Information Institute says you need a separate sewer backup endorsement on your homeowners policy.
Is private flood insurance better than NFIP?
It depends on the policy. Private flood insurance is sold by many insurers and terms vary, so compare the building and contents limits, basement coverage, waiting period and whether living expenses are included. A 2023 Triple-I and Munich Re survey found that 35 percent of at-risk homeowners with flood coverage bought it privately.
Sources
- FloodSmart.gov (NFIP): Buy a Flood Insurance Policy
- FloodSmart.gov (NFIP): What is a Flood?
- FEMA Fact Sheet: What Does Flood Insurance Cover in a Basement?
- Insurance Information Institute: Facts and Statistics, Flood Insurance
- Insurance Information Institute: Which disasters are covered by homeowners insurance?
- Insurance Information Institute: How to protect your home from water damage