What does NFIP flood insurance cover?

All FAQs

Quick answer: Building and contents against flood: up to $250,000 building / $100,000 contents for homes, $500,000 each for commercial; private excess can layer on top.

NFIP flood insurance covers physical flood damage to your building and its contents, up to set dollar limits, through the National Flood Insurance Program run by the federal government. It exists because standard homeowners and renters policies do not cover flooding. The NFIP defines a flood as surface water that inundates normally dry land, including overflowing rivers, heavy rainfall runoff, storm surge, and flash floods. In Georgia, where tropical systems and intense storms push water inland from the coast and across low-lying areas, that distinction matters a great deal.

What NFIP building coverage pays for

Building coverage protects the physical structure and the systems attached to it, up to a maximum of $250,000 for a single-family home.

  • The foundation, walls, and structural framing
  • Electrical and plumbing systems
  • Furnaces, water heaters, and central air conditioning
  • Built-in appliances such as the dishwasher and range
  • Permanently installed cabinets, paneling, and flooring
  • Detached garages, within limits

What NFIP contents coverage pays for

Contents coverage is purchased separately, with a maximum of $100,000 for a home, and protects your belongings.

  • Furniture, clothing, and electronics
  • Curtains and portable appliances such as microwaves
  • Washers and dryers
  • Up to $2,500 for certain valuable items like artwork

Renters can buy contents-only coverage to protect their belongings even though they do not own the building. Our standalone flood insurance page walks through how building and contents coverage fit together.

A real-world example

Imagine a homeowner in a low-lying part of Brunswick when a tropical storm dumps a foot of rain and a nearby creek overflows. Water rises two feet into the home, ruining the flooring, lower drywall, the furnace, and the water heater, and destroying furniture and electronics on the first floor. Building damage totals $60,000 and contents losses reach $25,000. With both NFIP building and contents coverage in place, the policy pays each loss minus the deductible, which is set separately for building and contents. A homeowners policy alone would pay nothing here, because the damage came from rising surface water, which is excluded.

Important limits and exclusions

  • NFIP pays building losses on a replacement cost basis for a primary residence, but contents are paid at actual cash value, meaning depreciation is subtracted
  • Basements and below-grade areas have very limited coverage; finished basement walls, flooring, and personal items there are largely excluded
  • Outdoor property such as decks, patios, fences, landscaping, and pools is generally not covered
  • Loss of use or additional living expenses while you are displaced is not covered, unlike most homeowners policies
  • Vehicles are excluded; flood damage to a car falls under the comprehensive part of an auto policy
  • Sewer backup is only covered if it is a direct result of flooding, so review our guide on Georgia sewer backup and water damage coverage

The 30-day waiting period

NFIP policies usually take effect 30 days after purchase, so you cannot wait until a storm is in the forecast to buy coverage. Anyone in or near a flood-prone area should put a policy in place well ahead of hurricane season. Even properties outside high-risk flood zones flood; a large share of NFIP claims come from moderate- and low-risk areas, which is why coverage is worth considering even when a lender does not require it.

NFIP versus private flood insurance

The NFIP caps building coverage at $250,000 and offers no loss-of-use coverage, which leaves higher-value homes underprotected. Private flood policies can offer higher limits, additional living expense coverage, and sometimes shorter waiting periods. For many Georgia homeowners, comparing an NFIP policy against private options is the smart move, and we can run that comparison for you using the carriers available through Olive Cover.

Flood risk is easy to underestimate until water is in your living room, and the coverage details determine whether you recover fully or fall short. To find out whether NFIP, a private flood policy, or a mix is right for your home, start a free coverage review with us today.