Each spring, Iowa residents face the potential threat of flooding. Standard homeowner, renter, and property insurance policies often exclude flood damage. However, flood insurance options exist to protect against financial losses.
Traditionally, in most flood-prone Iowa areas, flood insurance is available through the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP). Those not in an NFIP community have private insurance options.
According to FEMA, just one inch of water can cause $25,000 in damage. Between 2016 and 2022, the average NFIP flood claim paid out over $66,000. High-risk flood areas may require flood insurance. The FEMA Flood Map Service Center is the official public source for flood hazard information supporting the NFIP.
The NFIP offers both building and contents coverage. It also offers flood insurance for renters, businesses, and preferred risk policies for residential properties in low-to-moderate-risk zones. A 30-day waiting period usually applies before flood insurance takes effect. Contact a licensed insurance agent soon to discuss your coverage options.
Why consider private flood insurance?
Iowa’s history includes significant flooding events. Even if not required, those outside the NFIP program should consider private flood protection. Licensed insurance agents in Iowa sell private flood insurance, which may also have a waiting period. Parametric flood insurance provides payouts based on a predefined flood event, instead of the actual loss amount. Water and sewer backup coverage is different from flood insurance; these are not automatically included in homeowners policies and require special endorsements. Review your homeowners policy annually for these endorsements and adequate coverage. Always carefully read any insurance policy to understand its coverage.
FEMA’s NFIP generally covers direct physical losses to your structure and belongings. Private flood insurance might provide loss-of-use coverage, not available through a federal government policy. Pay close attention to policy exclusions and discuss coverage limits with your agent to ensure sufficient protection.
Additional flood information and risk assessments are available on the NFIP website. For current flood alerts and stream levels in Iowa, visit the Iowa Flood Information System.
Iowans who believe their property insurance should cover flood damage, but are not receiving compensation appropriate to their insurance policy, may file a complaint with the Iowa Insurance Division. Before a disaster strikes, review the Post-Disaster Claims Guide to assist in completing a home inventory and filing any future insurance claims.
Flood damage can affect anyone in Iowa. An NFIP or private flood insurance policy may protect you from water damage losses. Take action now to secure coverage before the flood season begins.
