Do I have flood insurance?

If you know me, you know I love reality TV. Love Island US is peak reality television, and I’m addicted. I’m not trying to justify my addiction, but I am just a “social” watcher. It’s so much more fun with people (read: my wife). Don’t knock it till you try it.

Now, let’s talk about something decidedly not fun: flooding.

The devastation across Texas and other states last weekend was heartbreaking. Water is a shockingly destructive force. The speed at which rivers rose made even the most prepared people question whether they were ready. If you were affected, I wish you a speedy and full recovery.

If you weren’t, you’re probably double-checking your emergency plans: batteries, bottled water, canned goods, and, of course, insurance. But here’s the thing, if you’re asking, “Do I have flood insurance?” the answer is almost certainly no.

Not from heavy rainfall. Not from storm surge. Not from overflowing rivers. If the damage is labeled a “flood,” your standard homeowners insurance does not cover it.

So How Do You Get Flood Protection?

That kind of coverage requires a separate flood insurance policy, typically through the National Flood Insurance Program (NFIP) or a private insurer.

When you apply for a mortgage, especially a federally backed one (FHA, VA, USDA, or through a federally regulated bank), your lender is required to check if the home is in a FEMA-designated Special Flood Hazard Area (SFHA).

If it is (Zone A, AE, V, etc.):

➤ Flood insurance is mandatory to close the loan.

If it’s not:

➤ Flood insurance isn’t required — and that’s usually where people stop thinking about it.

I know I did. I saw “flood risk: low” on the application and moved on. But “low” doesn’t mean “none.”

If you often see standing water in your yard after normal storms, talk to a landscaper. You may have a grading issue. If the water lingers for days, or your house is the only one on the block with a moat, you may have a bigger problem.

If you’re only seeing standing water after major storms (tropical storms, hurricanes, atmospheric rivers), you’re probably okay. Even the earth gets overwhelmed sometimes.

Why Is Flood Insurance So Expensive?

Because flooding is catastrophically expensive.

Water doesn’t just soak your carpets. It destroys flooring, drywall, insulation, wiring, your HVAC system, and sometimes the foundation itself. Mold can start growing in 24–48 hours. Just one inch of water in a 2,500 sq. ft. home can easily rack up over $25,000 in damage.

Flood insurance premiums reflect that risk:

• NFIP policies average $700–$1,500/year depending on your location, elevation, and flood history.

• Private insurers in high-risk zones or coastal areas can charge $2,000+ annually.

• There’s typically a 30-day waiting period before coverage kicks in — so no, you can’t buy it the day before the hurricane.

What Does Standard Homeowners Insurance Cover?

Good news: not all water damage is excluded.

Covered:

• A tree punches a hole in your roof and rain floods your attic — covered.

• A pipe bursts and floods your kitchen — covered.

• Your washing machine hose snaps — likely covered.

Not Covered:

• Water enters your home from the ground up — not covered.

• Storm surge — not covered.

• Overflowing creek floods your basement — not covered.

Bottom Line

It’s always a good idea to review your disaster preparedness. But don’t let the news push you into panic-buying coverage you may not need.

For every hypothetical disaster, there’s a Northwestern Mutual agent on LinkedIn ready to sell you a policy. Your job is to:

1. Know what your insurance does cover.

2. Assess your actual risk to uncovered events.

3. Choose the solution that makes sense — whether that’s more emergency savings, a Xanax prescription, or flood insurance.

Personally, I go with a slightly higher emergency fund and an undeserved confidence that YouTube and a “can-do” attitude can fix anything. For the record: I’ve never actually fixed a single thing in my house. Changing a lightbulb is my limit.

Debrief on Deck

Next week, we will talk about our originally schedule CFP, CFA, and other LinkedIn Candy titles that people use.

As always, please reach out to us with any questions or comments you have. You can reply directly to this email or find us on Instagram.

Until then, stay the course.

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