How do flood insurance deductibles work? What is a flood insurance deductible? How is it different from other deductibles? We are going to discuss those things today.

Before understanding how a flood insurance deductible works we must understand what is a deductible. A deductible is the amount an insured must pay before an insurance company will pay anything. All insurance policies have deductibles some maybe 0 and some maybe $25,000. Some insurance policies have multiple deductibles.

For example on auto insurance you could have three different deductibles. You may have a collision deductible, a comprehensive deductible, and an uninsured deductible covering three different types of claims. On a home policy you may have a traditional deductible and then a wind/ hail deductible. However on flood insurance deductibles are a little bit different.

When it comes to a traditional National Flood Insurance Program flood policy you have two types of coverage. You have building coverage and contents coverage. When comes to a private market policy you may have three types of coverage building, contents, and additional living expenses or business loss of use coverage. On both of these policies you have one deductible and that's it. Whether you file a building only claim, a contents only claim, or a claim for both you are still paying the same deductible.

When it comes to deductibles you want to be careful that you don't pick an extremely high deductible to save $100 a year. You want to pick a deductible you can afford. To often people have to file a claim and then take out a loan just to cover the deductible because it saved $100 a year.

Now that we understand how flood insurance deductibles work and how they are different lets make sure we answer any questions.

If you have questions about flood insurance deductibles please visit our website Flood Insurance Guru, subscribe to our YouTube channel The Flood Insurance Guru, or like our Facebook page The Flood Insurance Guru.

Chris Greene


Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation