Best Flood Insurance Companies
Key takeaways
- You get flood insurance either through the National Flood Insurance Program (NFIP) or from a private flood insurance company.
- All NFIP flood insurance has the same cost and coverage, no matter which company writes the policy, but private flood insurance can differ.
- Flooding is not covered by homeowners insurance.
Who has the best flood insurance?
The best flood insurance for your situation depends on how much coverage you need and where your house is located.
You can get a flood insurance quote through an insurance company taking part in the government-backed National Flood Insurance Program (NFIP), or with a private flood insurance policy.
NFIP flood insurance
Most flood insurance is sold through the NFIP. A standard home insurance policy does not cover flooding, so to fill this potentially disastrous coverage gap, the NFIP was started in 1968.
Rates and coverage offered by the NFIP are the same, no matter which insurance company you actually buy the flood insurance from. Because of this, customer satisfaction is a major factor when choosing your flood insurance.
Below are some of the biggest NFIP providers
| Company | LendingTree star rating | J.D. Power customer satisfaction* | AM Best rating** | |
|---|---|---|---|---|
 | Allstate |  | 868 | A+ |
 | American Family | | 877 | A |
 | Farmers |  | 883 | A |
 | Progressive | | 851 | A+ |
 | State Farm | | 873 | A++ |
*The J.D. Power 2024 U.S. Property Claims Satisfaction Study measures rates the overall satisfaction policyholders have with claims-related experiences with their insurer. The average rate is 869.
**AM Best rates insurers based on their financial strength and capability to pay out on claims.
An NFIP policy offers the following flood insurance limits:
- Building coverage (single-family residence): $250,000
- Contents coverage: $100,000
Floods are becoming more common — in 2023 alone, flood events rose nearly 29% — putting financial pressure on the NFIP, while making their services all the more important.
Pros:
Available in all 50 states
Backed by the federal government
Cons:
Restricted coverage limits
30-day wait period after policy purchase to go into effect
Doesn’t cover additional living expenses
Private flood insurance
Unlike NFIP-backed flood insurance, private flood insurance can offer higher coverage limits.
Private flood insurance policies offer the following:
- Building coverage (single-family residence): Up to $500,000, depending on insurer
- Contents coverage: Up to $250,000, depending on insurer
While NFIP’s coverage limits are written in stone, private insurance has more flexibility.
If your home’s replacement cost is over $250,000, an NFIP policy probably won’t meet your lender’s coverage requirements (if you’re financing the home). In that case, private flood insurance can be a good way to go.
Another benefit of private flood insurance is a shorter wait period for the policy to go into effect. Private companies like Palomar can offer you coverage that can kick in without a wait period, while all NFIP policies have a 30-day wait.
Pros:
Shorter maximum wait period for policy to go into effect
Higher coverage limits possible
Additional living expenses can be covered
Cons:
No federal government financial backing
Not always available in high-risk flood zones
| Private insurers who specialize in flood insurance include… | |
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Do I need flood insurance?
If you have a mortgage from a federally-backed lender, and you live in a high-risk flood area, then you’re required to carry flood insurance. You can find out your flood risk by checking the FEMA Flood Map Service Center.
You may need to check with your mortgage lender about any requirements for flood insurance.
Even if you don’t live in a high-risk flood zone, flood insurance can be a good investment. According to FEMA, 25% of flood claims are filed outside of high-risk zones, and just one inch of water can cause $25,000 in damages.
How much does flood insurance cost?
The current average cost of NFIP flood insurance for a single-family residence is $883 a year.
Factors that can affect your rates are:
- Elevation of your home and its distance from water
- Construction of your home
- How much coverage you buy
- ZIP code
- Deductible amount chosen
The cost of a private flood insurance policy will depend on the company you go with. Private flood insurers use many of the same factors above to set your rate.
Private flood insurance can be cheaper than NFIP-backed flood insurance. For example, private flood insurer Neptune states that a private policy can be 20% to 50% cheaper than an NFIP one.
Methodology
Flood insurance rates were calculated using data from the NFIP as of Jan. 31, 2024. The best flood insurance companies were chosen based on their rating in the 2024 J.D. Power U.S. Property Claims Satisfaction Study, as well as the current AM Best financial strength ratings.