How to check flood risk and buy flood insurance early
For flood insurance when buying a house, look up the address on FEMA's flood maps before closing, then get quotes even if your lender doesn't require them. NFIP policies usually take 30 days to start. If you buy in connection with your loan, and apply and pay at or before closing, the wait doesn't apply. Homeowners policies generally exclude flood.
What flood insurance covers when buying a house
Flood insurance is a separate policy that can cover the building, its contents or both. Standard homeowners policies generally exclude flood. That means groundwater, rain runoff and snowmelt, while a burst pipe or roof leak is usually a homeowners claim.
You have two places to buy it. The National Flood Insurance Program, run by FEMA, is sold through more than 47 insurance companies and through NFIP Direct, in the 22,600 communities that take part. Private insurers sell flood policies too.
A flood zone on a map tells you about risk, but not everything. Check the map, and also ask about the home's own history.
When to check, and the flood insurance waiting period
Do this as soon as you're under contract, while you can still walk away or renegotiate. A high flood premium can change your monthly budget, and it's better to learn that before closing.
Timing decides when you're protected. These are the main NFIP rules, which your agent should confirm for your policy:
| Situation | Waiting period |
|---|---|
| Standard new policy | 30 days from purchase |
| Bought in connection with making, increasing, extending or renewing a loan | None, if you apply and pay at or before closing |
| Bought within 13 months of a flood map revision | 1 day |
| Required by a lender on a loan that lacks coverage | None once you apply and pay |
After closing, the exception tied to your loan is gone. A policy you buy a month later on your own waits the full 30 days, so buying once a storm is forecast is too late.
Flood insurance when buying a house: dates and cost
A worked example shows how the dates play out:
| Event | Date | Covered? |
|---|---|---|
| You close and buy with the loan, paying by closing | June 1 | Yes, from closing |
| You skip it, then buy on your own | June 15 | Not until about July 15 |
| A storm floods the street | July 1 | Only the first buyer has coverage |
NAIC cites an average of about $700 a year for flood coverage, but premiums vary widely, so get a quote for the actual address. Ask each quote for its building limit, contents limit and deductible, and how it handles basements. Triple-I says flood coverage for belongings is only available on an actual cash value basis.
How to check flood risk and get flood insurance when buying a house
- Search the address
Use FEMA's Flood Map Service Center at msc.fema.gov and note the flood zone for the property.
- Ask about the home's history
Ask the seller in writing about past flooding, water damage, claims and any current flood policy.
- Ask your lender
Find out if your loan requires flood insurance, and how much coverage.
- Get several quotes
Start at floodsmart.gov or call the NFIP at (877) 336-2627, then ask an agent for a private quote too.
- Compare like for like
Line up building limit, contents limit, deductible and how each policy handles basements.
- Buy it with your loan
Submit the application and pay at or before closing so the waiting period doesn't apply.
- Keep it visible
Store the policy with your closing papers, and review it if the flood map changes.
Who needs flood insurance, and how states differ
Federal rules set the base. Homes in high-risk flood areas with mortgages from government-backed lenders must carry flood insurance. Your lender tells you if yours does. Outside those areas it's your call.
Disclosure rules differ by state. Some states require sellers to disclose past flooding and others ask less, so ask in writing and check your state's seller disclosure form. Private flood options and prices also differ by state, and your state insurance department can help you verify a company.
Flood risk mistakes to avoid
- Assuming low risk means no risk. Check the map, the elevation and past claims.
- Relying on the seller's word. Ask for a written answer on past flooding and any existing policy.
- Missing out on a seller's policy. FEMA guidance has allowed an existing NFIP policy to be assigned when the insured signs the request, so ask if that could work for you.
- Basements. Ask what's covered there before you finish or furnish one.
- Paying late. The exception depends on the application and premium being in by closing.
Questions about flood zone rules and coverage
How long does flood insurance take to go into effect?
NFIP policies typically take 30 days from purchase. There's no wait when coverage is bought in connection with a loan and paid at or before closing, and there's a 1-day wait in the 13 months after a qualifying map revision.
Do I need flood insurance if I'm not in a flood zone?
Your lender may not require it, but your homeowners policy still won't cover flood. Get a quote, since it's your decision and the risk isn't zero outside mapped zones.
Can I take over the seller's flood insurance?
Possibly. FEMA guidance has allowed an existing NFIP policy to be assigned when the insured signs the request. Ask the seller and your agent if it's available and worthwhile for your home.
Sources: FEMA, NAIC, Insurance Information Institute
General guidance for U.S. homes, not professional advice. For gas, electrical and structural work, call a licensed pro.