One in five Californians — about 7 million people — live in a flood-risk area.1 California has experienced six flooding events that resulted in more than $1 billion in damages since 1980.2
Standard homeowners insurance doesn’t cover water damage from floods, so you may want a separate flood insurance policy. Your mortgage company may require you to buy it to protect your property. You should always compare quotes and coverage options from multiple insurers to find the right coverage.
Here’s what you need to know about California flood insurance, including average costs, whether you need it, and how to buy a policy.
The average cost of flood insurance in California is $901 per year, which is only a bit higher than the U.S. average rate of $888. Insurance companies calculate flood insurance premiums by considering factors like the home’s foundation materials, replacement cost value, and proximity to coasts, rivers, and lakes.
Homeowners in the Sierra Nevada region face the highest flood risk in California and pay the most for flood insurance.3 Sierra County has the most expensive average premium, followed by Lassen and Plumas counties. Sutter, Sacramento, and Merced County homeowners have the cheapest flood insurance premiums.
Compare annual flood insurance costs by county below.
California doesn’t require homeowners to buy flood insurance, but your mortgage lender may require you to have it. Coverage requirements depend on your area’s flood risk, but the federal government mandates lenders to require flood coverage for homes in special flood hazard areas.
Approximately 20% of Californians (more than 7 million people) live in areas with a high flood risk.1 Without flood insurance, you could get stuck with an expensive bill because homeowners insurance doesn’t cover the cost of flood damage.
FEMA flood maps, known as Flood Insurance Rate Maps (FIRMs), show areas with low, moderate, and high risk. Each flood zone has a label of A, V, B, C, or X. High-risk areas, labeled A and V, have a chance of at least one in four of flooding during a 30-year mortgage. Moderate-to-low-risk areas, labeled B, C, and X, still account for more than 20% of NFIP claims.6
You can find your flood risk by checking FEMA’s Flood Map Service Center. The California Department of Water Resources also has a flood risk notification program and resources to help you determine potential flood hazards where you live.
Standard homeowners policies exclude flood-related damage, but a separate flood insurance policy can protect your California home.
Typical flood coverage includes your home’s structure and your personal belongings, such as:
Electrical and plumbing systems, including furnaces and water heaters
Appliances like refrigerators, cooking stoves, and dishwashers
Permanently installed carpeting, cabinets, paneling, and bookcases
Window blinds and curtains
Detached garages
Clothing, furniture, and electronic equipment
Perhaps even more important than knowing what your flood insurance covers is knowing what it doesn’t. Depending on your insurer, your policy might not reimburse you for the following losses:
Hotel or rental costs while you’re waiting for repairs
Damage to your car or its parts
Damage to valuables like cash, stock certificates, and precious metals
Personal belongings stored in your basement
Damage to your lawn or fence
Damage to outdoor structures like decks, septic systems, and sheds
Lost income from business interruptions caused by flooding
If you own a home in the Golden State, you can get California flood insurance through private insurance companies or the NFIP. Most policyholders get NFIP flood coverage, according to a 2023 Triple-I/Munich Re Consumer Survey.8
Weighing the pros and cons of each option can help you decide which is best. For example, a policy from the NFIP caps coverage at $250,000 for your home and $100,000 for its contents, while private insurers can offer up to $1 million or more.9 Higher coverage amounts can make a private policy more attractive, but it also increases the cost of premiums.
To buy a policy, contact the NFIP or check with your current insurance company. Many companies that sell homeowners insurance also offer flood insurance policies. Depending on the insurer, bundling the two coverages together may be cheaper than purchasing each separately.
It’s important to note that NFIP policies have a 30-day waiting period before coverage kicks in. The longest you’ll have to wait with a private policy is 15 days, while some companies give you protection right away.
If a flood has damaged your home in California, follow these steps to file a flood insurance claim:
Contact your insurance company or the NFIP at 1 (877) 336-2627 as soon as it’s safe to inspect your property.
Document the damage with photos or videos, and don’t throw anything away until your adjuster sees it (unless it’s a health hazard or the law requires you to discard it).
Begin cleaning up and moving items you want to save to a dry space.
List damaged or destroyed personal property, including details and receipts, if your policy covers personal belongings.
Review your claim for errors or missed damages. You have a 60-day window to request additional payment.10
The claim timeline varies, but you should hear from your adjuster within a day or two. The time it takes to process your claim depends on the extent of the flooding and the number of affected homes in your area.
Farmers is the cheapest homeowners insurance company in California. But it may not be the right carrier for your coverage needs.
The table below breaks down some of California’s cheapest home insurance companies.
If you’re still wondering about flood insurance in California, check out the answers to some of the most common questions below for more information.
Yes. California property owners can purchase flood insurance through a private insurer or the NFIP. Note that mortgage lenders may require you to buy flood coverage if your property is at an increased risk of flooding.
The average cost of flood insurance in California is $901 per year. Premiums in the Golden State are slightly higher than the national average rate of $888. How much you pay for coverage will depend on the community you live in. If you live in a high-risk flood zone, you’ll pay more for coverage than people in low-risk areas.
FEMA has two primary functions: civil defense and emergency management. It also manages the NFIP, the primary provider of flood insurance policies in the United States.
Despite the state’s high flood risk, a mere 2% of Californians have flood insurance.11 This leaves the majority exposed to potentially devastating financial consequences in the event of a flood.
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3+ years experience in insurance and personal finance editing
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