Your Florida homeowners insurance policy does not provide coverage for damage caused by flooding. But if you live in Florida, your mortgage lender might require Florida flood insurance if you live in a moderate or high-risk flood zone. What’s more, Florida is highly susceptible to flooding because of its low elevation, coastal location, and increased potential for tropical storms and hurricanes.  

Even if you live in an area that has never seen major flooding before doesn’t mean it will never happen. Yes, major floods are typically caused by hurricanes, overtopped levees or river overflows, but they can also be caused by outdated or clogged drainage systems and sudden, rapid accumulation of rainfall. 

What is Flood Insurance?

Congress created the National Flood Insurance Program (NFIP) in 1968 to help provide a way for property owners to financially protect themselves from flood damage. Flood insurance from the NFIP is available to homeowners, renters, condo owners, and business owners in communities that participate in the program.

Your NFIP flood insurance policy only covers your property damage under certain conditions. The NFIP defines a flood as, “An excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.”

Other examples of flooding as defined by the NFIP include:

• Overflow: During a tropical storm or a hurricane, storm surge can cause an overflow of inland or tidal waters. 
• Runoff: When an area without sufficient drainage receives heavy rainfall in a short period of time.
• Mudflow: Heavy or sustained rainfall accumulates on the ground and forms a river of mud down a hillside. This is a common occurrence after a wildfire.
• Erosion: Severe storms can produce waves and cause shoreline erosion along lakes and other bodies of water. 

Again according to the NFIP, “Flood insurance covers overflow of inland or tidal waters and unusual and rapid accumulation or runoff of surface waters from any source. However, the flood must be a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is yours).”

What Does Flood Insurance Cover in Florida?

According to FloodSmart.gov, flood insurance policies cover physical damage to your property and possessions, including the following:

Building Coverage

• The insured building and its foundation
• Electrical and plumbing systems
• Central air conditioning equipment, furnaces, and water heaters
• Refrigerators, cooking stoves, and built-in appliances
• Permanently installed carpeting over unfinished flooring
• Permanently installed paneling, wallboard, bookcases, and cabinets
• Window blinds
• Detached garages
• Debris removal

Contents Coverage

• Clothing, furniture, and electronic equipment
• Curtains
• Portable and window air conditioners
• Portable microwave ovens and portable dishwashers
• Carpets that are not included in building coverage
• Clothes washers and dryers
• Food freezers and the food in them
• Certain valuable items such as original artwork and furs, up to $2,500

Building coverage and contents coverage must be purchased separately and always have separate deductibles. If you do not purchase contents coverage, your flood-damaged personal property will not be covered.  

What Does Flood Insurance Not Cover in Florida?

Certain items or types of damage are not covered by flood insurance in Florida, including:

• Damage caused by moisture, mildew, or mold that could have been avoided by the property owner
• Currency, precious metals, and valuable papers such as stock certificates
• Property and belongings outside of an insured building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools
• Living expenses such as temporary housing
• Financial losses caused by business interruption or loss of use of the insured property
• Cars and other vehicles and their parts

In addition to these exclusions, coverage for basements and areas below the lowest elevated floor is limited. These exclusions may apply to basements, crawl spaces, walkout basements, and enclosed areas under certain types of elevated buildings. 

You will need to talk with your independent insurance agent about the specifics of your basement coverage. It may depend on the date of construction and where your home is located. 

Be aware that damage caused by wind-driven rain is not covered by flood insurance. When rain enters through a wind-damaged window or door, or some other part of your home that is damaged, the NFIP considers any resulting water damage to be caused by a windstorm, not caused by a flood. 

In most cases, the cause of the flooding will help determine whether or not your flood insurance policy will cover you. In cases of sewer backup, for example, if the sewer backup is the direct result of flooding, you’ll be covered by flood insurance. If the backup is caused by some other problem, flood insurance will not cover you. 

Do I Really Need Flood Insurance in Florida?

One of the greatest myths about flood insurance is that if you don’t live in a flood zone, you don’t need it. But the NFIP offers some startling statistics that might just make you think otherwise. 

First, the NFIP stresses that nearly 25% of all flood insurance claims come from properties outside of high-risk flood areas. In addition, those who live outside of high-risk flood areas receive one-third of the federal disaster assistance for flood related disasters. What’s more, disaster assistance is usually in the form of a loan that must be paid back, with interest. 

On the other hand, those who live in a low- to moderate-risk areas may be eligible for a Preferred Risk Policy, which can be very affordable and will provide both building and contents coverage. The annual premium for a Preferred Risk Flood Insurance Policy will likely be far less than the cost of making repairs on your own, or paying back a federal disaster loan. 

If you live in a Non-Special Flood Hazard Area (an area that has been designated low- to moderate-risk for flooding), it is important that you weigh the pros and cons of purchasing flood insurance. A Non-Special Flood Hazard Area is defined by the NFIP as one that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. But floods can happen anywhere, at any time. According to the NFIP, nearly one in four flood claims occur in these areas. 

Is My Florida House Near a Flood Zone?

Every home or neighborhood is at least in some flood risk. It’s important to know whether you live in a high-risk, low-risk, or moderate-risk flood area. 

The easiest way to find out if your Florida home is located in a flood zone is to visit the website of the National Flood Insurance Program, FloodSmart.gov. The Flood Map Service Center provides flood maps for communities across the US. 

Flood maps depict a community’s flood risk, including the flood zone, floodplain boundaries, and base flood elevation. These can help you determine your flood insurance requirements and get an idea of how much a flood insurance policy might cost. 

Remember that while flood insurance isn't required by the state of Florida, your mortgage lender will likely require it if you live in a high-risk flood zone. Here’s how to evaluate your flood risk based on the flood maps. 

LOW RISK FLOOD AREAS: ZONES X, B, C

• 26% of flood claims occur in these zones
• Flood insurance is not required
• Flood insurance is less expensive

HIGH RISK FLOOD AREAS: ZONES A, V

• 74% of flood claims occur in these zones
• Flood insurance is likely required by your mortgage lender
• Flood insurance is more expensive

Can I Afford Flood Insurance in Florida?

National Flood Insurance Program (NFIP) flood insurance rates do not differ from company to company or agent to agent. All policies include the same basic fees, and the average policy costs about $700 per year. 

What you pay for flood insurance in Florida will vary based on several factors, including:

• Age, size, and type of home construction
• Flood risk for your home’s location
• Elevation of the lowest floor of your home
• Deductible and amount of building and contents coverage

The flood risk for your Florida home is the biggest factor impacting how much your flood insurance policy will cost. Again, using the NFIP’s flood maps can help you determine how much you might pay for flood insurance in Florida. 

Do I Need an Agent to Purchase Flood Insurance in Florida? 

Flood insurance can only be purchased from your Florida independent insurance agent, not directly from the federal government. When you apply for federal flood insurance, there will be a thirty-day waiting period after you have completed the application and made the first premium payment for the policy to become effective. 

Your insurance agent can help you learn about whether or not you live in a flood plain or a high-risk zone, and can get you quotes for flood insurance in your Florida community.