Consumer Advocacy
What you need to know
Flood Insurance
  • Most homeowner’s insurance policies do not cover flood damages.
  • In the US, flood insurance is almost exclusively underwritten by the federal government.
  • 20% of all floods in the US happen in areas with “low-to-moderate” risk.
  • One inch of floodwater can cause up to $10K in damages in your home.
Our Approach

How We Found The Best Flood Insurance

Customer Support
From local agents and 24/7 support to online account management and expedited claiming processes, we prioritized insurance companies that offer outstanding service to policyholders.
Financial Stability
A solid financial foundation is a must for any insurance agency. To determine an insurer’s financial rating, we looked at data provided by AM Best.
Additional Coverage Options
Flood insurance should be able to fit your needs. For this reason, we prioritized companies offering coverage above the limits set by the federal government.
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We receive compensation from these partners, which impacts the order they appear on the page. That said, the analyses and opinions on our site are our own and we believe in editorial integrity.

Our Top Picks: Flood Insurance Reviews

If you’re wondering whether or not to get flood insurance because you live in a “low risk” area, consider what FEMA has to say on the subject: “Anywhere it can rain, it can flood.” In fact, flooding is the most common natural disaster in the US, and approximately 20% of all flood-related damages happen in areas mapped outside those considered “high risk.”

flood area warning sign
FLOOD FACT #1

Floods are the most common natural disaster in the US,
AND 20% OF FLOODING DAMAGES
occur in areas deemed “low risk”.

 

Unlike most insurance policies, flood insurance in the US is not underwritten by private companies but almost exclusively by the federal government. In practice, this means that the rates, premiums, deductibles, and coverage limits you’ll get for flood insurance will be virtually identical throughout the nation, regardless of which insurer you’re getting the policy from. For more details on the relationship between the federal government and private flood insurance companies, check out our Helpful Information section.

This being the case, we took a slightly different approach when sorting out insurance companies for these reviews: instead of focusing primarily on costs and coverage limits (as we would with other types of insurance), we prioritized companies based on factors such as financial strength and customer/claim satisfaction. We favored companies that offer services in all or most of the 50 states and that provide coverage options that surpass the limits set by the federal government.

After many hours of research on the subject, including several interviews with flood experts, we determined the following are the best flood insurance policies for 2020. 

Flood Insurance Options for USAA and AARP Members

If you are a member of the military, you should know that the USAA is part of the NFIP’s program and therefore offers standard flood insurance to its members. However, if you need more coverage, they can also arrange for it to be purchased from a third party. For more information, visit their website.

Lastly, if you’re one of the 38 million members of the AARP, you should know that they have partnered with The Hartford–an insurance company with more than 200 years of experience in the industry and an A+ rating by AM Best–to offer its members standard flood insurance backed by the NFIP. For more information, visit their website.  

State Farm review

Best For Basic Flood Insurance (Tie)

 

Screenshot Statefarm.com, July 2020

With 19,000 agents across the country, 100 years of experience in the insurance business, and the highest possible AM Best financial rating of A++, State Farm is one of the leading and most popular insurance companies in the US.

State Farm only offers federal flood insurance policies, which is why it’s ideal for homeowners looking to purchase basic NFIP insurance for their property and belongings. If you already have home insurance with State Farm, you can add your flood policy to your existing home insurance policy.

State Farm Highlights: 

  • Service in all 50 states and D.C.
  • 58,000 employees
  • J.D. Power Customer Satisfaction rating of 4 out of 5
  • Discounts available for properties that have been elevated above the base flood elevation
  • 24/7 phone support

Farmers review

Best for Basic Flood Insurance (Tie)

Screenshot Farmers.com, July 2020

Since its establishment in 1928, Farmers Insurance has been one of the leading insurance companies in the US. Farmers currently serves more than 10 million households, manages over 19 million individual policies, and has over 48,000 agents across the country.

 The fifth largest insurer in the US, Farmers has an AM Best rating of “A” (Excellent) for its solid financial stability. For these reasons, it’s one of the top two insurance companies for people looking for basic flood policies.

 Farmers Insurance Highlights:

  • Phone support available in English, Spanish, and for the hearing impaired.
  • You can manage your account via Farmers’ website or free app.
  • Policyholders can take advantage of Farmers Friendly Review, in which a  live agent will help you update your coverage if necessary.
  • Service available in all 50 states.
  • Several discounts available for bundling.

Allstate review

Best for Endorsements and Bundling

Screenshot Allstate.com, July 2020 

While most insurance companies only offer NFIP-backed policies for flood insurance, Allstate is one of the few that also offers private flood insurance as a “rider” or “endorsement” to your current homeowner’s policy. If you have homeowner’s insurance with Allstate, you can add coverage for sewage and drain backup, valuables, and your garden or yard. 

With an AM Best rating of A+ and 90 years of experience in the insurance industry, Allstate is ideal for people looking for the convenience that comes with bundling together several policies.   

Allstate Highlights:

  • Over 12,000 agents across the nation
  • Services available in all 50 states, D.C., and Puerto Rico
  • 24/7 phone support
  • Website and mobile app available for account management

Aon Edge review

Best for Excess Flood Coverage

Screenshot Aonedge.com, July 2020 

If you need flood coverage for your home or belongings over the limits set by the federal government ($250,000 for homes and $100,000 for belongings), Aon Edge, a product of Aon Insurance, offers up to $5 million in coverage (building and contents combined). Remember, however, that this excess flood policy is not underwritten by the federal government.

One of the main benefits of getting Aon Edge insurance is that there’s no 30-day waiting period—the policy is effective immediately. The company has an AM Best rating of A (Excellent) and, according to its website, one of the fastest and easiest application processes on the market, with only 12 questions.

Aon Edge Highlights:

  • Available in all states except AK, DC, and KY
  • No certificate of elevation required
  • Available for businesses
  • Minimum premium of $350, plus fees and taxes, except in North Carolina ($2,500 plus fees and taxes) and Connecticut ($1,000 plus fees and taxes).
Our Research

Further Insight Into Our Methodology

As we mentioned above, flood insurance in the US works differently than other types of insurance; even though flood policies are offered through private insurers, it is the government, via FEMA’s National Flood Insurance Program (NFIP), that sets the rates and coverage limits. In other words, when it comes to federally-backed flood insurance, private insurers act as “intermediaries” between you and the federal government, while the latter is responsible for setting flooding costs across the nation and underwriting all policies. This is why, instead of comparing costs and coverage limits between insurance providers (like we would with most types of insurance), for this review we decided the following three factors are instrumental when looking out for the best flood policies in the market. Let’s take a brief look at each:


Customer Support

If your house or property has suffered damages from flooding, you want your insurer to be available right away, ready to help you restore what’s been lost. Because all federal flood policies cover the same items for the same rates, excellent customer service is essential for any company looking to stand out from the competition.

For this reason, we prioritized insurance companies offering comprehensive, round-the-clock, personalized services that include:

  • 24/7, multimedia access to customer support (phone, email, and live chat)
  • Local agents for in-person support
  • Disaster response units
  • Online account management, including renewals and claim submissions

To determine the levels of customer satisfaction with each insurer, we read hundreds of customer testimonials and reviews, reviewed each company’s support departments thoroughly, and consulted several industry reports on the subject.  

Lastly, we made sure that the companies included in this list offered their services in all or most of the 50 states.


Financial Stability

Even though the federal government underwrites most insurance policies in the US, the companies offering them to the public must be financially stable in order to work efficiently. When the flood strikes, the last thing you want is a company that’s financially “underwater.” For this reason, we consulted A.M. Best’s ratings, which deal exclusively with insurance companies’ finances and overall stability.


Additional Coverage Options

The federal government limits flood insurance coverage at $250,000. But what if you need more?

While most flood insurance companies don’t offer any type of coverage outside the limits set by the federal government, there are others, such as the ones included in this list, that offer coverage options above the federal cap. While these “excess” flood policies are not guaranteed by the government, they are essential for people who could not recover their losses with the standard, government-backed coverage.

We also looked at any available discounts or benefits, especially “bundling discounts,” in which you get to pay less by bundling together several insurance policies offered by the same insurer.

flood area warning sign
FLOOD FACT #2

1-inch of flood water can cause
UP TO $10,000 IN DAMAGES
to your home

Helpful Information on Flood Insurance

The federal agency FEMA defines a flood as “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 1 of which is the policyholder’s property) from 1) Overflow of inland or tidal waters; 2) Unusual and rapid accumulation or runoff of surface waters from any source; or 3) Mudflow; or a Collapse or subsidence of land along the shore of a lake or a similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.” This means that, even if your house is inundated completely and you end up losing everything due to a burst water pipe inside your home, this disaster would not be considered as one caused by “flooding” and is therefore not covered by flood insurance.

In the US, flood insurance is almost exclusively offered by the federal government, via FEMA’s National Flood Insurance Program (NFIP). The NFIP was created to provide affordable flood insurance to all US homeowners, and it sets the premiums, deductibles, and coverage limits throughout the nation. Specifically, NFIP policies have coverage caps of $250,000 for residential buildings, $100,000 for residential contents, and $500,000 for business buildings and contents.  

If you apply for a mortgage backed by the federal government for a property located in an area deemed at risk by FEMA, you’ll be required to get flood insurance for said property. For other property owners, there are two main ways to get flood insurance:

1) Directly with the NFIP: If your property is located in a “participating community” (communities that are implementing NFIP’s floodplain-management measures), you may purchase flood insurance directly from one of the NFIP Direct Servicing Agents. In this scenario, there are no intermediaries between you and your insurer (the federal government.) However, there are two major setbacks to this approach:

  1. The coverage will be capped by the limits set by the NFIP.
  2. The best private insurers (such as the ones included in this review) usually have more resources (specially technical and human resources) to handle major disasters than the government does, which means you’ll have a better chance of getting your claim paid faster if you go the private route.

2) Via the NFIP’s “Write Your Own” Program (WYO): If your property is not in a community participating in the NFIP’s program, you may still get flood insurance via one of the dozens of private insurance companies participating in the NFIP’s “Write Your Own” Program (WYO). Even though you’ll be getting the flood policy via a private insurer, the rates and coverage limits will not vary from insurer to insurer, as they’re set by the federal government. This option is ideal for people who are already policyholders of a participating insurance company, since they can just add flood insurance to their current policy and take advantage of any benefits or discounts that may be available for “bundling.”  

Regarding types of coverage, there are three options:

  1. A standard, standalone policy with the rates and limits set by the NFIP.
  2. A private “excess flood” policy to get coverage above the limits set by the NFIP.
  3. A private “flood endorsement” policy that can be added to your private home insurance for an additional premium.

However, you should know that options 2 and 3 (“excess” and “endorsement” policies) are not underwritten by the federal government, which means that the private insurer is responsible for handling and paying any claims that may arise.

The NFIP offers two policies: one for your home’s structure and another for your belongings. They must be purchased separately, and each policy has its own premiums according to your specific needs. Coverage for all NFIP policies are paid at actual cash value for contents and replacement value for primary residences.

What can be done to prevent flooding and flood-related damages?

According to Bruce McVicar, Assistant Professor in the Department of Civil and Environmental Engineering at the University of Waterloo, who specializes in floods and urban stormwater management, these are the steps that can be taken by individuals, communities, and cities:

 On a single house scale, people can:

  • Divert roof and driveway runoff to grassed areas rather than to the road or sewers.
  • Plant more trees or create rain gardens to soak up the runoff and help it infiltrate into the ground (but not close to foundations of the house).
  • Make sure that the ground is sloped away from their house all around the house
  • Pay particular attention to any openings to the house that are below the ground level.  Reverse-slope driveways and window wells can be entry points for water.

 At a community or neighborhood scale:

  • Ensure that the stormwater drainage system is in good shape by unclogging drains and gutters.
  • Plant more trees and reduce large impervious surfaces like parking lots.
  • Look for opportunities to add some stormwater management ponds and wetlands, particularly for large parking lots and roofed areas.
  • Check the topography to think about how water would drain in a really big event.

At a city or watershed scale:

  • Encourage homeowners to manage stormwater on their property with incentives and free consulting/design guides, subsidized approved contractors for landscaping and house drainage work that has a purpose of stormwater management.
  • Develop watershed and neighborhood drainage plans.
  • Regulate development near waterways.
  • Educate the public.
  • Infrastructure fixes - stormwater management facilities, bigger sewer pipes, larger bridge openings to reduce the potential for flooding.

NFIP Flood Insurance Coverage

① Building Coverage - What is covered

The insured building and its foundation
window with a building popping out of it

The electrical and plumbing systems
window with plumbing system popping out of it

Central air conditioning equipment, furnaces, and water heaters
window with a heater popping out of it

Refrigerators, cooking stoves, and built-in appliances such as dishwashers
window with a blue refrigerator popping out of it

Permanently installed carpeting over an unfinished floor
window with a carpet popping out of it

Permanently installed paneling, wallboard, bookcases, and cabinets
bookcase poppping out of window

Window blinds
window shades

Debris removal
debri removal truck popping out of window

Areas Below Lowest Elevated Floor*

Central air conditioner

central air condition unit popping out of basement window

Cisterns and the water in them

cistern popping out of window

Electrical outlets, switches, and circuit breaker boxes

circuit breaker box popping out of window

Foundation walls, anchorage systems, and staircases attached to the building

staricase popping out of window

Fuel tanks and the fuel in them, solar energy equipment, and well water tanks and pumps Furnaces, water heaters, heat pumps, and sump pumps

solar battery system popping out of window

The following items are covered in basements only: Drywall for walls and ceilings | Non-flammable insulation

insulation material inside a

top of clipboard

② Contents Coverage (Must be purchased separately)

What is Covered

☑️ Personal belongings such as clothing, furniture, and electronic equipment
☑️ Curtains
☑️ Portable and window air conditioners
☑️ Portable microwave ovens and portable dishwashers
☑️ Carpets 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)

Areas Below Lowest Elevated Floor

☑️ Washers and dryers
☑️ Food freezers and the food in them (but not refrigerators)
☑️ Portable and window air conditioners

*What is the area below lowest elevated floor? These areas include basements, crawlspaces under an elevated building, enclosed areas beneath buildings elevated on full-story foundation walls (sometimes referred to as “walkout basements”), and enclosed areas under other types of elevated buildings.

 

③ Not Covered by NFIP Flood Policies

Damage caused by moisture, mildew, or mold that could have been avoided by the property owner
Living expenses such as temporary housing
Most self-propelled vehicles such as cars, including their parts
Currency, precious metals, and valuable papers such as stock certificates
Property and belongings outside of a building such as trees, plants, shrubs, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools
Financial losses caused by business interruption or loss of use of insured property
Any damage caused by seepage, or any sub-surface water flow, a condition of flow of water beneath the earth’s surface.

Source: National Flood Insurance Program, “Summary of Coverage”, June 2019

The Costs of Flood Insurance

In 2020, the average annual cost for NFIP-backed flood insurance is $708. However, this number will vary according to the specifics of your property.

While NFIP rates are the same when it comes to private insurers, that does not mean that premiums are the same for all properties. To further explain, let’s take Houses A and B as an example. If the NFIP has determined that House A must pay an annual rate of $500 for flood insurance, the rate of $500 will remain the same regardless of which private insurer is offering the policy for House A. On the other hand, House B, which is located just across the street from House B, only has to pay $400 in annual rates, and this rate will also remain the same throughout all private insurers. Why the $100 difference?

The following factors come into play when it comes to the pricing of your flood insurance policy:

  • The flood zone* (as designated by FEMA) in which the property is located
  • Property age
  • Property elevation
  • Number of floors
  • Building occupancy
  • Foundation type

*The NFIP and FEMA use “flood maps” to determine an area’s vulnerability to flooding. The maps are divided by zones, and each zone is assigned a level of vulnerability, from lowest to highest. 

Lastly, you should know that, like most types of insurance, NFIP flood policies require the payment of deductibles. For homes with $100,000 or less in coverage, the minimum deductible is $1,000. For homes with coverage over $100,000, the minimum deductible is $1,250.

What To Watch Out For With Flood Insurance

The 30-Day Waiting Period

All flood insurance policies backed by the federal government have a 30-day waiting period for coverage to go into effect. In practice, this means that if you purchase your flood policy on Day 1 and a storm floods your house on Day 20, your property and belongings will not be covered by your flood insurance. This being the case, we recommend that you get your flood insurance policy as soon as possible.


FAQs about Flood Insurance


What areas are more vulnerable to flooding?

According to Daniel Henstra, Associate Professor of Public Policy at the University of Waterloo, “Land along rivers and coastlines is typically most prone to flooding. However, flooding is becoming more common in urban areas as heavy precipitation overwhelms stormwater management infrastructure. Most countries are exposed to flood risk due to patterns of concentrated settlement along oceans and major river systems, and increasing population in urban areas.”

Professor Henstra, who is a co-lead of the University of Waterloo’s Climate Risk Research Group and a leading expert in flood management and climate change adaptation, added that “Climate change is expected to make flooding worse. Global warming will increase the frequency of extreme weather, meaning many areas will see more heavy rainfall, which raises the risk of flooding. Warming of the atmosphere also contributes to melting ice in northern regions and thermal expansion of the oceans, causing sea levels to rise. As sea level rises, we can expect more flooding in coastal areas. All of this is combined with increasing development and population growth in flood-prone areas, and the combination of factors makes flooding more likely in the future.”


Is the purchase of flood insurance mandatory?

According to the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994, every person who applies for a federally backed mortgage for a property located in an area with high risk of flooding, must purchase flood insurance for said property. If your home is outside high-risk areas or you did not get a federally backed mortgage, the purchase of flood insurance is optional.


How can I find out the flood zone my property is located in?

FEMA’s Flood Map Service Center is the official source for flood mapping in the US. These maps are created by FEMA to aid them and the public in assessing flooding risks, and are essential in determining flood insurance prices. According to law, FEMA must update these maps on a national level every five years, and on a community-based level whenever an update is deemed necessary. 

However, you should know that a lot of these maps have not been updated as required by law, which means that they may not reflect the real flooding vulnerability for certain areas. According to FEMA’s website, this updating backlog is due to funding constraints. Moreover, a 2017 report by the Department of Homeland Security’s Office of the Inspector General concluded that “FEMA is unable to assess flood hazard to meet its program goal.”