What flood insurance covers (and what it doesn't)

Checked against FEMA and other official sources · Last reviewed October 8, 2026

Building coverage and contents coverage

An NFIP policy has two main parts, and you choose an amount for each. Building coverage (Coverage A in the policy) protects the house itself. Contents coverage (Coverage B) protects your personal property inside it. FloodSmart notes that building and contents coverage "are typically purchased separately and have separate deductibles."

For a single-family home or a two-to-four family building, the most building coverage the NFIP offers is $250,000. The most contents coverage for residential property is $100,000. Renters can buy contents coverage alone.

The policy form lists items that count as part of the building, including central air conditioners, furnaces, water heaters, built-in dishwashers, refrigerators, ranges and ovens, permanently installed cabinets and bookcases, light fixtures, and carpet permanently installed over unfinished flooring. Items such as clothes washers and dryers, portable or window air conditioners, food freezers and the food in them, and carpet over finished flooring are covered under contents.

A detached garage is covered under building coverage, but only up to 10% of your building limit, and using it reduces the building limit. The policy does not cover a detached garage used for living space, business, or farming. [1][2][4]

What counts as a flood

The policy only pays for loss "by or from flood," and it defines flood narrowly. A flood is "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 (one of which is your property)" from overflow of inland or tidal waters, unusual and rapid accumulation or runoff of surface waters from any source, or mudflow. Collapse of land along a lake or similar body of water from erosion by unusually high waves or currents also counts.

This means water that affects only your home, such as a burst pipe, is not a flood under the policy. Sewer backup, sump pump overflow, and seepage are excluded "unless there is a flood in the area and the flood is the proximate cause." FloodSmart gives an example: a sewer that backed up during a heavy rainstorm would be covered, but a backup caused by clogged pipes would not. For water damage that isn't a flood, see homeowners insurance and water damage. [1][4][5]

Does flood insurance cover a basement?

Only partly. The policy defines a basement as any area with its floor below ground level on all sides, including a sunken room. In a basement, building coverage is limited to a specific list. Covered items include:

• Central air conditioners, furnaces, water heaters, and heat pumps
• Electrical junction and circuit breaker boxes, outlets, and switches
• Sump pumps, well water tanks and pumps, cisterns, and fuel tanks
• Drywall for walls and ceilings, but only unfinished (nailed up, not taped or floated), and nonflammable insulation
• Stairways, foundations, and footings, plus clean-up

Contents coverage in a basement is limited to portable or window air conditioners, clothes washers and dryers, and food freezers (other than walk-in) and the food in them. Covered items must be installed in their working locations and, if needed, connected to power. FloodSmart's short summary lists "personal property kept in basements" among things the policy doesn't protect; the policy form itself makes the narrow exceptions above. Because the basement lists are limited to those items, most belongings stored there, along with finished flooring, paneling, and furniture, are not covered.

The same limits apply to the area below the lowest elevated floor of an elevated post-FIRM building in zones such as AE, A1-A30, AH, AR, VE, and V1-V30. See flood zone AE and flood zone VE. [1][4]

What flood insurance doesn't cover

The policy only pays for direct physical loss. It does not pay for:

• Temporary living costs. The policy excludes "any additional living expenses incurred while the insured building is being repaired or is unable to be occupied."
• Cars and most vehicles. Self-propelled vehicles are excluded, except some not licensed for road use, such as a riding mower that services the property.
• Most property outside the building. This includes land, lawns, trees, and shrubs; fences, retaining walls, seawalls, docks, and piers; septic systems and wells; swimming pools and most hot tubs; and walks, decks, driveways, and patios outside the building's walls. Personal property outside a building isn't covered either.
• Money and papers. Currency, coins, deeds, stock certificates, securities, and other valuable papers are excluded.
• Mold you could have controlled. Water, moisture, mildew, or mold damage is excluded when it results from a condition within your control, including "failure to inspect and maintain the property after a flood recedes." See mold after water damage.
• Earth movement. Earthquake, landslide, and sinkholes are excluded, even if a flood triggers them. Mudflow as defined in the policy is covered.
• Lost income and business interruption.

Some valuables are capped rather than excluded. The policy pays no more than $2,500 per loss for artwork, collectibles, jewelry, watches, furs, and personal property used in a business, combined. [1][4]

Extra coverages: ICC, debris removal, and loss avoidance

Increased Cost of Compliance (ICC). If your home is substantially or repeatedly damaged by flood and your community's floodplain rules require you to elevate, floodproof, relocate, or demolish it, ICC pays up to $30,000 toward those costs. It applies only to policies with building coverage and has no separate deductible. ICC is paid in addition to your building coverage, but the total of the two can't go over the maximum the law allows.

Debris removal is covered, but it doesn't raise your coverage limits.

Loss avoidance. The policy pays up to $1,000 for sandbags, fill for temporary levees, pumps, and plastic sheeting and lumber used with them, to protect the building when a flood is imminent. It pays up to another $1,000 to move insured property out of harm's way. These coverages do not have a deductible. [1]

Deductibles and how claims are paid

You pay the deductible first, and the policy pays the rest up to your limit. Separate deductibles apply to the building and to contents in each flood. The deductible amount appears on your declarations page. By law, the NFIP must offer residential policyholders deductible options "up to and including $10,000." A higher deductible can lower your premium; see flood insurance cost.

How the building is valued matters. A single-family home that is your principal residence gets replacement cost (the cost to repair the damaged part "with materials of like kind and quality") if you carry building coverage of at least 80% of its full replacement cost, or the maximum available. If your coverage is below both of those, the policy pays the greater of actual cash value or a proportional share of the repair cost. Contents, second homes, two-to-four family buildings, and detached garages are paid at actual cash value: replacement cost minus depreciation. Manufactured homes have their own settlement rules. Filing details are in our flood insurance claim guide. [1][3][6]

The 30-day waiting period and its exceptions

Federal law says new flood coverage, and changes to existing coverage, take effect after a 30-day period that begins once the application is complete and the premium is paid. Under this rule, a policy bought today won't cover a flood next week. The policy also excludes a flood that was already in progress when you applied.

The law lists these exceptions:

• Mortgage closing. There's no wait when you buy coverage in connection with making, increasing, extending, or renewing a loan.
• Flood map changes. When a map revision puts your property in a high-risk area, coverage bought soon after starts the next day. The law sets this window at one year after the revision notice is published. FEMA's regulation says 13 months from the revised map's effective date. FloodSmart says 12 months. Ask your agent which date applies to you.
• Wildfire. If flooding on federal land is caused or worsened by wildfire, coverage bought within 60 days of the fire's containment date starts the next day.

FloodSmart also says there's no wait if you change your coverage while renewing your policy. That case isn't among the exceptions listed in the law or FEMA's regulation, so confirm the timing with your agent before you count on it. [1][3][4][7]

Private flood insurance

Private companies also sell flood insurance outside the NFIP. Federal law requires regulated lenders to accept a private flood policy for a mortgage if it meets the law's coverage requirements. The NAIC, the association of state insurance regulators, says private flood insurers "tend to offer higher coverage limits and optional coverage." Private policy terms are set by each insurer, so read what a specific policy covers and ask your state insurance department if you have questions. [8][9]

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