Insurance Read Time: 2 min

Protecting Your Home Against Flood Loss

The financial loss that comes with flooding can be devastating. The average flood claim payout from the National Flood Insurance Program is over $66,000. Yet, many Americans are not protected against flood damages, primarily because flooding is not covered under a standard homeowners policy.1

Low vs. High Risk

Even if you are in a moderate-to-low-risk area—homes not residing within mapped high-risk flood plains—you could suffer flooding at some point. In fact, moderate-to-low-risk areas account for more than 25% of all National Flood Insurance Program insurance claims.2

To protect yourself from the financial risks of flooding, you can consider purchasing insurance through the National Flood Insurance Program, which you can obtain through a local insurance agent. However, to be eligible, you will need to live in a community that participates in the program.3

Coverage Choices

If you live in a moderate-to-low-risk area, you may qualify for coverage at a preferred rate, with building and contents coverage for one low price.

If you live in a high-risk area, the National Flood Insurance Program offers separate coverage for buildings and contents.

The cost of flood insurance depends on a number of factors, including the age of your home, the number of floors, the location of contents, and other considerations.  You should consider the amount of your deductible and level of coverage before purchasing a flood insurance policy.

1. FEMA.gov, 2025
2. FEMA.gov, 2025
3. FEMA.gov, 2025

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

Leaving Your Lasting Legacy

Leaving Your Lasting Legacy

Want to do more with your wealth? You might want to consider creating a charitable foundation.

8 Financial Milestone Birthdays

8 Financial Milestone Birthdays

Get ready to celebrate your financial birthdays in this informative infographic.

A Living Trust Primer

A Living Trust Primer

Living trusts are popular, but their appropriateness will depend upon your individual needs and objectives.

 

Have A Question About This Topic?







Thank you! Oops!

How Financial Professionals Are Compensated

Read this overview to learn how financial advisors are compensated.

Practical Moves to Safeguard Your Financial Progress

Explore these strategies to help protect your purchasing power in a world of rising costs.

Estate Strategies of the Rich and Famous

The examples of famous celebrities underline the need for a clear estate strategy.

View all articles

Historical Inflation

See how the purchasing power of a dollar has changed over time due to inflation.

What Rate Would I Need to Earn on My Savings?

Work backwards from your savings goal to find the rate of return you'd need to get there.

Social Security Tax Estimator

Estimate how much of your Social Security benefit may be subject to federal income tax.

View all calculators

Are Alternative Investments Right for You?

With alternative investments, it’s critical to sort through the complexity.

From Boats to Brokers

From the Dutch East India Company to Wall St., the stock market has a long and storied history.

Dreaming Up an Active Retirement

When you retire, how will you treat your next chapter?

View all videos