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FludZone

Do I Need Flood Insurance?

Whether flood insurance is required, recommended, or optional depends on your FEMA flood zone, mortgage type, and lender. Here is how to find out.

Last updated: February 2026

What Is Flood Insurance?

Flood insurance is a separate policy that covers damage to your property caused by flooding. Standard homeowners insurance does not cover flood damage, so even if you have home insurance, you are not protected against floods without a dedicated flood policy.

The Short Answer

If your property is in a high-risk flood zone (any A or V zone) and you have a federally backed mortgage, your lender is required by law to ensure you carry flood insurance for the life of the loan. This comes from the Flood Disaster Protection Act of 1973.

Outside the SFHA, flood insurance is not required by federal law. However, about 25% of all NFIP flood claims come from properties outside high-risk zones. Flooding can happen anywhere, and the cost of coverage in lower-risk zones is substantially less than in high-risk areas.

Decision Guide by Flood Zone

Zones A, AE, AH, AO, AR, A99, V, VE

High-Risk (SFHA)

With a federally regulated or government-backed mortgage: Flood insurance is required by federal law. Your lender will verify coverage before closing and for the life of the loan.
Without a mortgage (own outright): Not legally required, but strongly recommended. You face the same flood risk regardless of your mortgage status.
Typical annual cost: $1,500 to $10,000+ depending on zone, elevation, and property characteristics under Risk Rating 2.0.

Zone X (shaded) / Zone B

Moderate Risk

Not required by federal law. These areas are outside the SFHA but within the 500-year floodplain (0.2% annual chance).
Recommended. Moderate-risk zones still face meaningful flood exposure. Some lenders may require coverage even though federal law does not.
Typical annual cost: $400 to $900 per year. Lower-risk properties generally qualify for lower rates under Risk Rating 2.0.

Zone X (unshaded) / Zone C

Low Risk

Not required by federal law. These areas are outside both the 100-year and 500-year floodplains.
Optional but worth considering. About 25% of NFIP claims come from outside high-risk zones. Coverage for lower-risk properties is affordable relative to the potential loss.
Typical annual cost: $400 to $700 per year.

Zone D

Undetermined Risk

Not required by federal law. Zone D is not classified as an SFHA because FEMA has not studied the area.
Recommended. Undetermined does not mean safe. The risk is unknown, not absent. Some lenders may require coverage in Zone D.

Your Mortgage Type Matters

The federal flood insurance mandate applies specifically to properties with mortgages from federally regulated or government-backed lenders. This covers the vast majority of home loans in the United States.

Mortgage TypeInsurance Required in SFHA?
Conventional (Fannie Mae / Freddie Mac)Yes
FHAYes
VAYes
USDAYes
Jumbo (portfolio lender)Depends on lender policy
Private / hard money loanDepends on lender policy
No mortgage (owned outright)Not required (recommended)

Even lenders not federally regulated may require flood insurance as a condition of the loan. Check your loan documents or ask your lender directly.

What Happens If You Skip Flood Insurance

Force-Placed Insurance

If you have a federally regulated or government-backed mortgage in an SFHA and fail to purchase flood insurance within 45 days of notification, your lender is required by law to force-place a policy. Force-placed insurance is typically two to three times more expensive than a standard NFIP policy and only covers the lender's interest in the structure, not your personal belongings or equity.

After a Flood Without Insurance

Federal disaster assistance is not guaranteed after every flood. When it is available, it typically comes in the form of Small Business Administration (SBA) loans that must be repaid with interest, not grants. The average FEMA disaster grant is far less than the average flood claim payout. A single inch of floodwater can cause more than $25,000 in damage to a typical home.

Homeowners Insurance Does Not Cover Floods

Standard homeowners insurance policies do not cover flood damage. This is true regardless of the cause, whether it is a hurricane, heavy rainfall, snowmelt, or a river overflowing its banks. Flood insurance must be purchased as a separate policy through the NFIP or a private insurer.

How to Get Flood Insurance

1

Look up your flood zone

Use FludZone to find your FEMA flood zone designation for free. This determines whether insurance is required and gives you a baseline for expected costs.

2

Get NFIP and private quotes

Contact your insurance agent for an NFIP quote. Then request quotes from private flood insurers to compare coverage and pricing.

3

Review coverage limits

NFIP caps building coverage at $250,000 and contents at $100,000. If your property exceeds these limits, consider excess flood coverage from a private insurer.

4

Plan for the waiting period

NFIP policies have a 30-day waiting period before coverage begins. Do not wait until a storm is approaching to purchase a policy.

Related Resources

Sources

This page summarizes information from FEMA and other official resources in plain language. For full technical details, see the links below.

Sources last verified: February 2026

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