If you live in or are considering moving to an area at risk for flooding, it’s important to know how flood insurance claims work. The average flood insurance claim payout from the National Flood Insurance Program (NFIP) is around $66,000, according to the Federal Emergency Management Agency (FEMA), so every bit counts.1
Understanding what affects your payout and how the process unfolds can help you get the most out of your claim.
Keep reading to know what to expect and how to maximize your payout.
After flood damage, you’ll want to file your claim quickly — within 60 days, in most cases. The entire process can take one to two months. Here’s a breakdown of key steps:2
Notify your insurance company. Contact your insurer right away. It will assign you an adjuster within 24 hours.
Meet with the adjuster. The adjuster assesses the damage, explains your coverage, and estimates the loss for your payout.
Submit proof of loss. This is a signed statement of how much you’re claiming. You’ll need to provide bills, receipts, and other proof to back up your claim.
Review the estimate. Carefully review the adjuster’s estimate. You’ll receive a payout once you and your insurance company agree on the amount.
After a flood, repair costs can pile up quickly. Getting the maximum amount from your flood insurance helps you ensure you’re not stuck paying more out of pocket. The adjuster estimates the damage, but you must provide the necessary details for a fair payout.
Here are some tips to make the most of your claim:3
If a flood is part of a federally declared disaster, processing your claim may take longer. Insurers get a large number of claims in a short period of time, slowing things down. But you could qualify for additional federal aid. For example, FEMA’s Individuals and Households Program can help cover costs your flood insurance doesn’t, like temporary housing or essential repairs.3
While FEMA provides financial support after a disaster, it isn’t meant to replace flood insurance. The agency only steps in after a federal disaster declaration, which occurs in less than half of flooding events.
Contact your insurance agent or company as soon as possible to start a flood insurance claim. Make sure you have a good sense of the full extent of the damage before filing.
While waiting for the adjuster to reach out, use this time to prepare. Separate damaged items from undamaged ones, drain standing water, ventilate areas, and consider removing carpets to prevent mold growth.
You usually have 60 days to submit the proof of loss form, so take your time gathering receipts and other paperwork to verify purchase dates and values. If you disagree with the adjuster’s estimate or notice any discrepancies, notify your insurance company. Be ready to provide additional documentation or negotiate to resolve any issues.
Floods can happen anywhere, but having a flood policy doesn’t guarantee you’ll get a big payout. Insurers look at a number of factors when deciding how much to pay for a flood insurance claim.
Here are the main ones, according to the Insurance Information Institute:4
Policy type: Your insurer will consider whether your policy has actual cash value or replacement cost.
Deductible amount: The higher your deductible, the more you pay from your own funds when filing a claim.
Policy limits: You can’t receive more than your policy’s maximum coverage, no matter how high the damage costs.
These factors play a role in determining your payout, but understanding how they work can help you maximize your claim. Here’s how each one affects your claim.
Flood insurance reimburses you in two ways: actual cash value (ACV) or replacement cost value.
With ACV, your insurance pays what your items are worth today, factoring in depreciation. For example, if your refrigerator is 10 years old when the flood hits, ACV reimburses you for its current, used value.
Replacement cost pays for a new item of similar kind and quality without factoring in depreciation. For your 10-year-old refrigerator, a policy with replacement cost value pays for a brand-new one, regardless of age.
It’s important to note that replacement cost coverage can increase flood insurance premiums — the insurer pays more when you file a claim, and the higher coverage comes with a higher price tag. But if you have expensive luxury items or electronics, it may be worth it.
A deductible is the amount you agree to pay out of pocket before your flood insurance steps in to cover the rest. For example, if your deductible is $1,000 and the flood damage totals $20,000, you’ll pay the first grand and get a payout of $19,000.
You have a few options when choosing your deductible. If you buy NFIP coverage, you can select a deductible from $1,000 to $10,000.
Higher deductibles can lower your insurance premium, but they reduce your payout. Before you choose, consider what you can afford in case of a claim.
NFIP policies only cover rebuilding the structure of your home up to $250,000. The most you can get for all your personal items is $100,000.
This cap might not be enough, especially since the average U.S. home sold price was $501,700 in 2024.5 If a catastrophic flood hits, lower limits might leave you paying out of pocket.
Private insurers typically offer higher coverage options. It can provide more protection for homes worth more than what NFIP policies can cover.
Standard home insurance doesn’t pay for water damage from floods. That’s why flood insurance can be crucial when flooding strikes. Flood insurance covers two categories: building coverage and contents coverage. Here’s what each includes.
Your home’s electrical and plumbing systems
Furnaces, water heaters, and built-in appliances like dishwashers
Permanent fixtures like cabinets and carpets
Foundation, walls, stairs, and anything that keeps your house standing
Detached garages and solar panels
Your personal stuff, like clothes, furniture, and electronics
Curtains, washers, dryers, and microwaves
Portable air conditioners and area rugs
Valuables like artwork or fur (often limited)
Flood insurance policies have specific exclusions. Here are some typical things you won’t be able to claim in a flood insurance payout:
Neglected damage: Mold, mildew, or moisture damage from improper cleanup after a flood
Condo assessments: Extra charges from your condo association to fix common areas
Outdoor and underground items: Landscaping, pools, decks, driveways, wells, and septic systems
Cash and important documents: Currency and stock certificates
Sewer backup: Damage if your sewer line or the community sewer line backs up
Ground movement: Damage from landslides, sinkholes, or erosion
Flood in progress: Flood damage that began before your policy took effect
If you live in a high-risk flood zone and have a mortgage, your lender will probably require you to get flood insurance. Flood insurance is worth considering even if your lender doesn’t mandate it.
Homes outside of high-risk flood areas can still flood. Flooding has hit 99% of U.S. counties since 1996, and FEMA reports that 25% of flood claims come from low-risk and moderate-risk areas.6
FEMA uses flood zones to determine a property’s flood risk. For example, a Special Flood Hazard Area (SFHA) is high risk.7 Getting a mortgage on a home in an SFHA usually means you have to buy flood insurance. But many people choose to have it because standard homeowners policies don’t cover flood damage.
To determine how much flood insurance you need, start by calculating your home’s replacement value, which is the cost of rebuilding your house from the ground up. Ideally, you want enough coverage to match that amount. The NFIP caps coverage at $250,000 for structural damage, and that may not be enough if your home is worth more.
If your property is above the NFIP limit, you can look into private flood insurance companies to get higher coverage amounts. Keep in mind that the NFIP also limits personal belongings to $100,000, so consider adding extra protection for high-value items.
Flood insurance can be pricey. The median flood insurance cost in the U.S. was $786 in 2023, according to FEMA.8 But lower premiums are possible if you apply a few tips:
Flood-proof your home. Move utilities to an attic or raised platform, and install flood openings in crawl spaces.
Fill in your basement. Premiums could drop 15%–20% by filling in your basement.
Elevate your home. Raise your home’s foundation above ground level.
Raise your deductible. A higher deductible means lower monthly payments. But make sure you can cover the cost if you need to file a claim.
Ask about discounts. Some insurers offer lower rates if you’ve made improvements to lower your flood risk or you live in a lower-risk area.
Flood insurance claims can feel overwhelming, especially when you’re waiting for a payout. Here are answers to some of the most common questions to help make things easier.
For an insurance company to make a payout, the claims adjuster will inspect your home and you’ll need to submit a proof of loss form to request money from the insurance company.
An insurance company could deny a water damage claim if flooding wasn’t the cause of the damage. Insurers can also deny claims if you didn’t take steps to protect your home from additional damage, such as mold.
No. FEMA assistance isn’t the same as flood insurance. FEMA provides temporary emergency help after a disaster but won’t fully cover flood damage. Flood insurance specifically covers damage to your home and personal property after a flood.
You can maximize a water damage claim by documenting everything carefully with photos and receipts. Get a few repair estimates and stay in communication with your adjuster so you don’t miss any details.
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