A recent statement from the Insurance Information Institute (Triple-I) highlights a common misconception about flood damage coverage. According to the statement, "A common misconception is that standard homeowners, condo and renters insurance covers flood damage. It generally does not." The Triple-I advises that flood insurance can be purchased separately through the National Flood Insurance Program (NFIP) or from private insurers.
The organization emphasizes that homes outside of high-risk flood zones are still vulnerable to flooding. "More than one-quarter of NFIP claims come from 'low- to moderate-risk' areas," they state. NFIP policies provide up to $250,000 in building coverage and $100,000 in contents coverage.
For those seeking higher limits and broader coverage, some private flood insurance policies may offer better options. These policies often include shorter waiting periods and are particularly important for high-value properties.
Furthermore, FEMA’s Risk Rating 2.0 is mentioned as a method that more accurately reflects each home’s unique flood risk through updated underwriting and pricing methodologies.