Flooding can cause major damage to homes, from ruined appliances to structural issues that take months to repair. Unfortunately, many homeowners only discover after the fact that their standard homeowners insurance policy doesn’t cover flood damage.
Does Home Insurance Cover Floods?
In most cases, the answer is no. Standard homeowners insurance covers sudden and accidental water damage, such as a burst pipe, but it does not cover water that enters your home from outside, including flash floods, heavy rains, or rising groundwater.
To protect your home and belongings from flooding, you need to purchase flood insurance separately, either through the Federal Emergency Management Agency (FEMA) National Flood Insurance Program (NFIP) or a private insurer.
Who Can Purchase Flood Insurance?
Homeowners and renters in participating communities can purchase NFIP flood insurance, even if their area isn’t a high-risk flood zone. Condo owners and landlords may also be eligible to insure their property. Mortgage lenders often require flood insurance for homes in high-risk flood zones, but anyone can choose to buy it for extra protection.
Flood insurance can help cover damage to:
- Structural elements of your home
- Essential systems like electrical and plumbing
- Appliances such as refrigerators, washers, and dryers
Without flood insurance, repairing or replacing these items typically becomes an out-of-pocket expense.
Explore NFIP Coverage
Steps to Take After a Flood
If your home is affected by flooding:
- Document all damage with photos and video
- Contact your insurance provider immediately to review what is covered
- Begin cleanup safely and promptly to prevent mold growth
- Explore financing options if repairs aren’t fully covered by insurance
Prime Financial Credit Union Can Help
We understand that unexpected home repairs can put a strain on your budget. To support our members, we’re offering a limited-time Home Equity Line of Credit (HELOC) special and an Emergency Disaster Signature Loan special. These flexible financing options can help you cover repair costs, replace damaged items, or prepare your home against future flooding risks.
HELOC
A HELOC allows you to borrow against the equity in your home, giving you a revolving line of credit to draw from as needed.
Loan Amount: Depends on home equity, typically larger amounts than Signature Loans or Credit Cards
Repayment: Interest only payments during 5 - 10 year draw period, principal + interest during 10 - 20 year repayment period
Best for:
- Major structural repairs (foundation, electrical, plumbing)
- Rebuilding or remodeling after serious damage
- Long-term projects where costs come in stages
Signature Loan
A Signature Loan provides a lump sum of money with fixed payments and no collateral required.
Loan Amount: Typically $1,000 to $20,000
Repayment: Equally monthly payments for up to four (4) years
Best for:
- Replacing damaged appliances or furniture
- Covering temporary housing or cleanup services
- Smaller, immediate expenses not fully covered by insurance
This information is provided for educational purposes only and should not be considered legal advice. Product details, including rates and terms, are for illustration purposes only. Terms, conditions, and features referenced in this article reflect what was generally available to consumers in the market at the time of publication and are subject to change. Actual products and services offered by Prime Financial Credit Union may vary from those in this article. Terms and conditions apply to products, services, and promotions offered by Prime Financial Credit Union; speak to a representative for details. All applications are subject to review and approval.
Prime Financial Credit Union does not endorse or make any guarantee relating to the products, services, or content provided by third-parties directly in this article nor by clicking links in this article that lead to websites not managed by Prime Financial Credit Union.
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