Last updated September 26, 2026 · By Chris Greene, founder of The Flood Insurance Guru
Yes, if you want your home protected from flooding. Homeowners insurance excludes flood damage, so it offers no protection when water rises from outside. Flood insurance is required if you have a federally backed mortgage on a home in a high-risk flood zone. Everywhere else it's optional, but it's the only way to be covered for flood.
Not sure what your homeowners policy leaves out? Start with does homeowners insurance cover flooding.
When flood insurance is required
Your lender must require flood insurance if both of these are true:
- The home is in a Special Flood Hazard Area (an A or V zone on the FEMA flood map).
- The mortgage is from a federally regulated or federally insured lender, or is backed by a government program.
Lenders can also require it outside high-risk zones under their own guidelines. Since 2019, lenders must accept qualifying private flood policies as well as NFIP policies. For the full picture, see does my mortgage require flood insurance? and the lender flood insurance requirements checklist.
It isn't only mortgages. We regularly place flood policies because a home equity line, a loan that uses the home as collateral, or a credit agreement requires it. Flood maps also change, and lenders act on them: a bank can notify you that your home is now in a floodplain even if water has never reached it.
If your lender doesn't receive proof of coverage, it can buy lender-placed flood insurance for you and bill you for it. That coverage usually costs far more than a policy you choose yourself.
When it's optional but worth serious thought
Plenty of homeowners buy flood insurance without anyone telling them to. Of the 5,654 new quote requests we received from January 2024 through September 2026, 37 percent were for homes outside high-risk flood zones (Zones X and C).
Being outside a high-risk zone lowers your odds; it doesn't remove them. Ask yourself these questions:
- Has water ever reached your street, yard, or neighborhood? Local history matters more than a zone letter.
- Is there a creek, drainage ditch, or low spot nearby? Inland flooding from heavy rain is common across the Southeast, including cities like Nashville, Birmingham, and Huntsville.
- Do you have a basement? Basements flood first and are covered least. Whether it's a walkout or fully below grade changes what a policy will pay.
- Could you rebuild out of pocket? If a flood would wipe out your savings, you need the coverage.
- Is your home high value? NFIP building coverage tops out at $250,000. Owners of higher-value homes often need private flood coverage to insure the full rebuild cost.
Don't forget your contents
A flood policy covers the building and your belongings separately. For a primary residence, I almost always recommend contents coverage of about 50 to 60 percent of your building coverage. Adding contents typically raises the premium by roughly 30 to 35 percent, and it's usually worth it. Own a rental? See investment property flood insurance.
Why I'm direct about this
I've helped clients through more than 10,000 flood claims over the last decade, including more than 2,000 during Hurricanes Helene and Debby. The hardest calls are always from homeowners who thought their homeowners policy had them covered.
Next: NFIP or private?
Once you've decided you need coverage, the next question is which kind. See NFIP or private: which should you buy? For the bigger decision framework, go back to do I need flood insurance?
Call 205-451-4294 or request a free quote. We sell flood insurance only and compare NFIP and private options in all 50 states.
Frequently asked questions
Do I need flood insurance if I already have homeowners insurance?
Yes, if you want flood protection. Homeowners policies exclude flood damage, so a separate flood policy is the only way to be covered when water rises from outside.
Is flood insurance required by law?
It's required by federal law only when you have a federally backed or federally regulated mortgage on a home in a high-risk flood zone. Lenders can also require it elsewhere.
Do I need flood insurance if I'm not in a flood zone?
It isn't required, but floods happen outside high-risk zones regularly. If your area has flooded before, you have a basement, or you couldn't afford to rebuild, coverage is worth pricing.
Will my lender accept private flood insurance?
Since 2019, federally regulated lenders must accept private flood policies that meet the federal definition of private flood insurance.
How much contents coverage should I buy?
For a primary residence, about 50 to 60 percent of your building coverage is a good starting point. Rentals and investment properties usually need less.
What happens if my lender doesn't get proof of flood insurance?
Your lender can buy flood coverage for you and add the cost to your loan. Lender-placed coverage usually costs far more than a policy you choose, so send proof of your own policy as soon as you have it.
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