The devastating floods that hit Texas in July 2025 and the massive flooding in North Carolina a few months earlier are a sobering reminder that floods can happen suddenly, with little warning, and increasingly in areas not designated as flood zones.
As climate change fuels more intense storms, longer rainy seasons and unprecedented weather patterns, flooding is no longer confined to the coasts or riverbanks. Urban sprawl, strained drainage systems and increased rainfall have made inland flooding a growing threat.
Besides the devastating personal effects, floods can be a financial blow for people who live outside a flood zone and didn’t purchase flood insurance because it wasn’t required by their lender. Sadly, many people in that situation find that their homeowner’s insurance policy excludes damage caused by flooding, and they are left to pay those costs themselves.
Just a few inches of floodwater can cause tens of thousands of dollars in damage, ruining flooring, drywall, appliances, furniture and irreplaceable personal belongings.
According to the Federal Emergency Management Agency, roughly 30% of flood insurance claims come from properties located outside designated high-risk flood zones. That number is even more alarming when you consider how few homeowners in those areas carry flood insurance.
Flood insurance options: NFIP vs. private market
While FEMA’s flood maps are widely used, they are not perfect. Many are outdated and may not reflect recent or expected future changes in weather patterns, land use or infrastructure. This has led to a growing number of surprise flood events in moderate- and low-risk areas, catching residents off guard and financially unprepared.
It has also spurred more homeowners in those areas to purchase coverage. Since they are in lower-risk areas, their premiums are typically lower than those for people who live in flood plains.
If you buy a home in a FEMA-designated high-risk flood zone and you take out a mortgage from a federally regulated lender, you are required to purchase flood insurance. However, those living outside flood zones are not required to purchase coverage.
Flood insurance is available through two main channels, both of which we can help you with:
- The National Flood Insurance Program — Managed by FEMA, this federally backed program offers up to $250,000 in dwelling coverage and $100,000 in personal property coverage. NFIP policies are available through us.
- Private flood insurance— Some insurers now offer higher coverage limits, replacement cost for personal property, shorter waiting periods and additional protections not available through the NFIP. However, not all private policies are equal, so you should carefully compare terms, exclusions and coverage limits before buying. In some cases, private flood insurance may be more competitively priced, especially for homes in low- to moderate-risk areas.
The takeaway
Flooding is the most common and costly natural disaster in the U.S. While FEMA maps offer some guidance, many homes in low-risk areas can still flood if a heavy weather system dumps historic amounts of rain in a short time.
Most flood insurance policies have a 30-day waiting period before coverage begins. The exception is if you’re buying a home and flood insurance is required at closing, in which case the waiting period is typically waived.