Floodplains_Content Page_Do I need flood insurance

Do I need flood insurance?

Flood-proof your finances and get peace of mind. Wherever it rains, it can flood. Know your risk, and protect the life you’ve built with flood insurance.

Anyone can be financially vulnerable to floods. Homeowners and renters outside of designated floodplains are at risk and most are not properly insured. In fact, people living outside of mapped high-risk flood areas file nearly 40% of all National Flood Insurance Program claims and receive one-third of Federal Disaster Assistance for flooding. The 2016 Wisconsin Hazard Mitigation plan indicates:

  • Since 1991, all but 3 counties in Wisconsin but 3 have had 1 or more flood-related federal disaster declarations.
  • In the federally-declared 2025 flood disaster in southeast Wisconsin, 23,298 residents applied for FEMA assistance from 19 counties.
  • Average household FEMA disaster relief awards related to the flooding was less than $4,000. Those with flood insurance could receive up to $250,000 toward damage to their structure. With a contents policy and additional $100,000 flood insurance payout is possible.
  • A one-percent chance flood (or 100-year event) can happen four or more times during a 30-year mortgage.

Over the next 50 years, the observed trend toward an increase in the annual amount of precipitation is expected to continue.

Flood insurance facts

Why do I need flood insurance?

  1. Flood insurance is important, even in low-risk areas that are not mapped in the floodplain. In Wisconsin, flooding is not only caused by rising levels in lakes and streams, it is also caused by broken water mains, blocked drainage systems, rapid snow melt (particularly when the ground is still frozen), periods of heavy rain in a short amount of time and ice jams. Floods can be exacerbated by high groundwater levels.
  2. Most homeowner's insurance does not cover flood damage. Flood loss to a home or business can easily total $25,000 or more. Flood insurance is a separate and distinct policy from homeowner’s insurance because flooding has proven to be one of the most frequent and costly disasters. Having a flood insurance policy for a business or home is an important tool for recovery.
  3. Most renter's insurance policies alone do not cover losses of contents due to flood damage.
  4. Federal Disaster Assistance is not a guarantee. According to the Federal Emergency Management Agency (FEMA), the president must declare a major disaster before most forms of federal disaster assistance can be offered and most forms of disaster assistance are loans that must be repaid with interest.
  5. Flood insurance will cover the home and belongings regardless of whether there is a Presidential Disaster Declaration.

Flood insurance facts

Flood insurance through the National Flood Insurance Program (NFIP) covers:

  • contents in the home or business;
  • walled and roofed structures principally above ground;
  • a building in the process of being constructed;
  • a detached garage used for limited storage or parking;
  • foundation walls, anchorage systems and staircases attached to the building;
  • refrigerators, cooking stoves and built-in appliances such as dishwashers;
  • permanently installed carpeting over an unfinished floor;
  • electrical and plumbing systems; and
  • furnaces, water heaters, heat pumps and sump pumps.

What is covered in an NFIP policy

  • A separate contents NFIP flood insurance policy for renters and home or business owners covers:
    • personal belongings such as clothing, furniture and electronic equipment;
    • curtains;
    • portable and window air conditioners (easily moved or relocated);
    • portable microwave ovens and portable dishwashers;
    • carpet installed over wood floors, etc.
    • laundry washers and dryers;
    • certain valuable items such as original artwork and furs (up to $2,500); and
    • Merchandise and raw materials held in storage or for sale, if you’re a business owner.

The time to buy flood insurance is before the flood.

  • There is a 30-day waiting period for an NFIP policy to take effect.
  • If purchasing an NFIP flood policy at the time of purchasing a new home, the policy is effective immediately.

Purchasing flood insurance

To purchase insurance through the National Flood Insurance Program (NFIP), homeowners should contact their local insurance agent. If unable to find a local agent, call 1-800-427-4661 (FEMAs National Flood Insurance Program) for assistance.

Suggestions to reduce the cost of flood insurance

  • Get an elevation certificate - Document your home's elevation with an elevation certificate. Comparing your home's elevation to the estimated height of floodwater can reduce your insurance costs.
  • Elevating your structure - Raising your house above the base flood elevation can reduce your flood insurance premium.
  • Mitigation is the effort to reduce loss of life and property by lessening the impact of a flood. Flood mitigation reduces the overall risk of a structure experiencing flood damage and also reduces the severity of flood damage when it occurs. A mitigated structure will have lower flood insurance costs. Mitigation options might include:
    • Elevate your utilities - Move utilities like your air conditioner or water heater to a higher location so they are less likely to be damaged in a flood. Try putting them in an attic, extra closet or even on an elevated platform. If they are above the base flood elevation, or the expected height of flood waters, you may get an insurance discount.
    • Install flood openings - Add an opening or vent in your ground-floor crawlspace to let floodwaters flow through. This will reduce pressure on your walls — and may reduce insurance costs.
    • Waterproof or fill in your basement - Maintain a working sump pump and install a water alarm to protect your basement from damage. Filling in your basement can save you money if you live in a high-risk flood zone. Homeowners with basements in those areas may pay 20% more for flood insurance.
    • For information on flood mitigation options for your structure, contact your local zoning administrator or email DNR Floodplain.
  • Encourage your community to join the FEMA Community Rating System. Community participation lowers NFIP rates for everyone in the community.

Crops, livestock and flood insurance

Insurance can be purchased through the NFIP to cover agricultural structures, but not crops or livestock.

Resources for:

Local officials

  1. Know your risk from flooding.
  2. Know your role in the Risk MAP process.
  3. Take action to reduce your community’s risk from flooding.

Make your community more flood resilient:

Learn more about the CRS Program

Insurance agents

Realtors

There are steps you can take to assist your clients in protecting their real estate investment from floods. Properties located outside of the mapped floodplain are eligible for flood insurance.

  1. Determine the flood risk of the property by finding the flood zone for the property's address at the FEMA's Map Service Center. If the structure is in the mapped floodplain, there is a high flood risk. However, be aware - wherever it can rain it can flood. 40% of flood insurance claims come from properties outside of the mapped floodplain.
  2. If the community is a National Flood Insurance Program (NFIP) participant, citizens in the community are eligible for federal flood insurance.
    • Find out if the community is an NFIP participant.
    • If the community is not an NFIP participant:
      • Speak with the local zoning administrator about having the community join the NFIP.

FEMA has additional resources.