In addition to strong winds, hurricanes can cause rip currents, tornadoes, landslides, inland flooding, storm surges, and heavy rain.
And while you can’t control the weather, you can prepare financially—especially when it comes to protecting your home from flood damage.
Here’s the catch: many homeowners think they’re covered, but their National Flood Insurance Program (NFIP) policy may fall short when it comes to rebuilding costs.
Why Your NFIP Policy May Not Be Enough
A standard NFIP policy caps out at $250,000 for residential buildings. If your home would cost more to rebuild than that, you could face a massive financial gap after a major flood.
And here’s another thing: most flood policies have a 30-day waiting period before coverage begins. If you’re thinking about getting extra protection, the sooner you act, the better.
Who Should Consider Excess Flood Insurance?
Excess flood insurance—sold by private insurers—kicks in when your NFIP coverage limit is maxed out. You should consider it if:
Your home’s rebuild cost exceeds $250,000
Your mortgage lender requires it (common for federally backed loans in high-risk flood zones)
You want extra peace of mind, even if it’s not required
Lenders may require flood insurance that covers the greater of:
Your home’s full replacement cost
Your remaining mortgage balance
The $250,000 NFIP limit
Excess coverage can bridge the gap if the cost of reconstructing your house after a flood exceeds your NFIP cap, sparing you from having to pay hundreds of thousands out of pocket.
How Excess Flood Coverage Works
An excess flood policy is designed to mirror your NFIP coverage terms but extend your protection beyond the $250,000 limit.
What Private Insurers Consider
Unlike the NFIP, which sets rates by flood zone, private insurers may factor in:
Your home’s age, construction type, and materials
Elevation and distance from water
Foundation type (basement, crawl space, slab)
Even which direction your home faces
Extra Perks Some Policies Offer
While the core coverage matches NFIP, some excess policies add valuable extras like:
Coverage for lost rental income
Additional living expenses while repairs are made
Flood prevention costs (like sandbags or barriers)
Most excess policies have no deductible, since they only apply after your NFIP coverage is used up.
Choosing the Right Flood Protection
Floods damage and destroy thousands of homes every year—but you don’t have to be caught off guard. A combination of NFIP coverage + excess flood insurance can give you the safety net you need to rebuild without crushing debt.
Whether you’re buying a home in a high-risk area or protecting your existing property, it’s worth talking to an insurance expert who can:
Assess your flood risk
Estimate your true rebuild cost
Recommend the right coverage limits
Bottom line:
In today’s storm-prone climate, being “covered” isn’t always the same as being fully protected. If your home’s value exceeds NFIP limits, extra flood insurance may be the life raft your finances need when the waters rise.
