Summer storms and flash floods aren’t just wet—they’re expensive. The typical U.S. homeowner may be hit with tens of thousands of dollars in damage without realizing their vulnerability. Shockingly, only 6% of U.S. households buy flood insurance, even though floodwater isn’t covered by standard homeowners’ insurance (1).
Consider the following question: What would just a few inches of water cost you?
Why Most People Are Unprotected
- Standard homeowners’ insurance doesn’t include flood damage—it covers wind and fire only (2).
- Floods also occur outside designated high-risk areas, accounting for about 25% of flood claims (3).
- Despite an average annual cost of $939, only about 3% of households carry NFIP flood coverage (4).
Everyday Ways to Help Protect Your Home & Finances
Here are practical, cost-effective considerations for most homeowners:
1. Consider getting flood insurance
- NFIP policies generally cost $500–$1,000/year, depending on location and flood risk (4).
2. Clean and maintain gutters & drainage
- Ensuring clear gutters helps direct water away from your foundation.
3. Seal foundation cracks
- Small cracks can let in costly water—seal them with hydraulic cement or caulk.
4. Install a sump pump and backwater valve
- These systems help prevent basement flooding or sewage backup during storms.
5. Elevate utilities and valuables
- Moving HVAC units, appliances, and electronics above ground reduces flood damage risk.
6. Landscape smartly
- Grading your yard to slope away from your home and installing French drains can limit water intrusion.
7. Keep sandbags and prepare emergency kits
- Sandbags and a ready “go‑bag” can be critical when flooding begins.
Advanced Concepts for Learning
Educational nuggets—not immediate action items:
- Parametric insurance pays out based on events (e.g., rainfall totals), not damage assessments.
- Catastrophe bonds help insurers cover major disaster costs—but aren’t products individuals buy.
Questions to consider:
- How would your finances hold up today if even a minor flood occurred?
- Could a sump pump or drainage fix save you money?
- Is a $500–$1,000 annual insurance cost worth avoiding possible $30,000+ repairs?
Remember
Floods aren’t just rainy weather—they’re financial threats. A modest investment in flood insurance, drainage, sealing cracks, and elevating essentials can significantly reduce both damage and cost.
Sources:
(1) Nadkarni, Sidhartha. “Insurance Is Failing Hurricane Survivors: ‘People Thought They Were Covered.’” The Guardian, 12 Oct. 2024, https://www.theguardian.com/us-news/2024/oct/12/flood-insurance-hurricane-milton-helene.
(2) Ho, Sally. “What Flood Insurance Does and Does Not Cover.” AP News, 9 July 2025, https://apnews.com/article/82c394257199e74c235df7e9b2ab1ce9.
(3) Gill, Kristine. “It’s Supposed to Be a Wet Summer: How to Tell If Your Home Is at Risk for Flooding.” Better Homes & Gardens, 27 June 2024, https://www.bhg.com/protect-home-from-flooding-8663246.
(4) “Facts + Statistics: Flood Insurance.” Insurance Information Institute, Jan. 2025, https://www.iii.org/article/facts-statistics-flood-insurance.
(5) “How to Prepare for an Emergency.” Kiplinger, 9 July 2025, https://www.kiplinger.com/article/saving/t065-c001-s001-how-to-prepare-for-an-emergency.html.
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