Do you need flood insurance? What to know ahead of hurricane season.

A miniature house partially submerged in turbulent water under a stormy sky and heavy rain

The NOAA is predicting an above average hurricane season this year

(Image credit: PM Images / Getty Images)

If you live in a hurricane-prone area, you likely have more on your mind as summer gets underway than just trips to the beach and backyard barbecues. The six-month-long hurricane season began June 1, bringing with it the risk of high winds and, of course, flooding from heavy rains and storm surge.

This year, officials at the National Oceanic and Atmospheric Administration (NOAA) have said they are "expecting more than the average number of hurricanes during the season," said The New York Times. "As many as 19 named storms, with six to 10 of them strengthening into hurricanes" are predicted, compared to the average of "14 named storms with seven becoming hurricanes."

If you do not already have it, flood insurance — which is notably not part of most home insurance policies — might be worth considering. In fact, some experts make the case for getting this form of coverage even if you are not in a hurricane zone.

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

When should you get flood insurance?

For some, flood insurance is a requirement. Your mortgage lender may "require you to buy flood insurance, especially if you're buying a house in a flood zone," said Rocket Mortgage. "Anyone who buys a home with government-issued or government-backed financing in a high-risk flood area" is also required by federal law to have flood insurance.

Even if you are not required, that does not necessarily mean you are safe — "about 20% of flood insurance claims come from areas that are considered low to moderate risk," said personal finance blog Ramsey Solutions. Particularly as a warming climate "spawns intense storms that drop heavy rainfall," even places far from the coasts "have had severe flooding in recent years," said the Times.

To decide if the cost of flood insurance is worthwhile, it may help to "estimate the losses you could incur from just a few inches of flood water," said Rocket Mortgage. You may quickly realize it is necessary to get that protection, if it works with your budget.

What does flood insurance cover?

Flood insurance "covers any damage related to flooding, regardless of the cause," said Rocket Mortgage. It is a "standalone policy" that you buy in addition to your standard homeowners insurance as, notably, most policies do not "fully or even partially" cover "most of these damages."

There are technically two types of flood insurance, "each with a separate deductible" and coverage areas, said NerdWallet: building coverage and contents coverage. Building coverage "is for the structure of your home," while contents coverage "pays for damage to your belongings."

How much does flood insurance typically cost?

On average, the "annual premium for a federal policy is $898," said the Times, citing Bankrate. However, that figure can vary drastically based on a "home's location, like its proximity to water, as well as its size, construction and other details." As you might expect, you will generally pay more in areas with a greater risk of flooding.

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.