Flood insurance claim help: how NFIP flood claims work

Homeowners policies exclude flood. Flood damage is paid only by a flood policy, and most US flood policies come from the National Flood Insurance Program (NFIP), run by FEMA. Private insurance companies sell and service most NFIP policies under FEMA’s rules, so your claim may carry a familiar company name even though federal rules apply.

The NFIP policy defines a flood narrowly. Water must cover two or more acres of normally dry land, or two or more properties (one of them yours). Overflowing rivers, storm surge, fast runoff and mudflow can count. A burst pipe inside the house doesn’t. That’s a water damage claim under your homeowners policy instead.

This page follows the NFIP rules as FEMA publishes them, in the Standard Flood Insurance Policy and FEMA’s NFIP claims handbook. Both are listed in this page’s sources.

An NFIP policy for a home has two parts, and each has its own limit and its own deductible (the amount you pay before the policy pays).

Contents coverage is optional, so check your declarations page to see whether you bought it. Our explainer on how depreciation changes a payout shows why contents payments are often lower than people expect.

NFIP policies don’t pay for a hotel or other living expenses while you’re out of your home. FEMA disaster aid may help with that gap (see below).

Only in part. The NFIP treats any area with a floor below ground level on all sides as a basement, and coverage there is limited.

• Usually covered under building: cleanup, furnaces, water heaters, central air units, electrical panels, unfinished drywall, and the foundation and basement floor. Equipment must be connected and in its working location.
• Usually covered under contents: clothes washers, dryers, and food freezers with the food in them, if you have contents coverage.
• Not covered: finished walls, floors and ceilings, and most belongings stored in a basement.

Water seeping in or a sump pump overflowing is covered only when a general flood in the area caused it.

A proof of loss is your signed, sworn statement of the amount you’re claiming. The standard NFIP policy says you must send it within 60 days after the loss. After some large disasters, FEMA has given more time, so check FEMA announcements for your event and get any extension in writing.

The adjuster may give you a completed proof of loss form and help you fill it out. The policy calls that a courtesy, so the deadline stays yours even if no form arrives. The policy also allows another route: you sign and swear to the adjuster’s report in place of a separate proof of loss. Ask your insurer which one it wants.

If you disagree with the adjuster’s estimate, you can still submit your own proof of loss with your figures and support. FEMA also says that if you find missed damage later, you can submit a supplemental claim.

Under the policy, payment is due 60 days after the insurer receives your proof of loss and you agree on the amount. You can also ask for an advance before the claim is settled. FEMA’s claim guide says insurers may offer up to $5,000 without an adjuster visit, and up to $20,000 with documentation when FEMA authorizes it. Any advance is subtracted from your final payment.

Your mortgage company must sign building checks, including advances. Contents payments generally go to you alone.

Increased Cost of Compliance (ICC)

If your community declares your home substantially damaged (repairs would cost 50% or more of its pre-flood market value), local rules may require you to raise, floodproof, move or demolish it. ICC coverage can pay up to $30,000 toward that work. It comes on top of your building payment, but the two together can’t exceed the $250,000 limit for a home. Ask your local floodplain manager about the substantial damage decision early.

Start by asking for the reason in writing. Compare the adjuster’s estimate with your contractor’s, line by line. Many differences come from missed rooms, wrong measurements or depreciation.

• Talk it through. Send your insurer the missing items with photos and estimates.
• Appraisal. If you only disagree about the dollar amount, either side can demand appraisal by two appraisers and an umpire.
• FEMA appeal. You can appeal a written denial directly to FEMA within 60 days of the date on the denial letter. There’s no fee.
• Court. A lawsuit must be filed in federal court within one year of the written denial. An appeal doesn’t pause that clock, and once you file a lawsuit you can no longer appeal to FEMA. Talk to a licensed attorney early if you’re considering this.

Our guide to a denied homeowners insurance claim explains how to read a denial letter. FEMA’s Office of the Flood Insurance Advocate can also help explain NFIP rules.

After a federally declared disaster, FEMA may offer grants for needs your insurance doesn’t cover, which can matter because flood insurance doesn’t pay for a place to stay. FEMA can’t pay for anything your insurance already paid, so it may ask for your settlement letter. If your area floods after a hurricane, our hurricane claim guide explains how wind and flood claims fit together.