Why Your Million-Dollar Home Doesn't Have Enough Flood Coverage

Okay, let's have an honest conversation about flood insurance — the kind you'd have over coffee with a friend who happens to know way too much about this stuff. (That's me. I'm the friend.)

If you've been watching the news from Washington state this week — historic flooding, 100,000 people evacuated, homes washed off their foundations — you might be wondering: Am I actually covered for this?

The answer, for most people, is "not as much as you think."

The #1 Mistake Smart People Make

Here's something that surprises nearly everyone we talk to: Your regular homeowner's insurance does NOT cover flood damage.

I know. You're paying all that money for insurance, and flooding — one of the most common disasters — isn't covered? It's infuriating, but it's true.

Standard homeowner's policies specifically exclude external flooding. If water comes from OUTSIDE your home — rising rivers, heavy rain, storm surge — you need a completely separate flood insurance policy.

(Water from INSIDE your home, like a burst pipe or rogue water heater, is usually covered by homeowner's. But that's a different situation.)

The Part That Really Gets People

So you go get flood insurance. Great! Problem solved, right?

Not so fast.

Most flood insurance comes through the National Flood Insurance Program (NFIP), administered by FEMA. And NFIP has maximum coverage limits:

• Building: $250,000
• Contents: $100,000

FOR THOSE OF US WITH HIGHER-VALUE HOMES — if you have a million-dollar home, you do the math. That's not even close.

We learned this the hard way in our family. During Hurricane Helene, my father's home had nearly $400,000 in damage. His coverage? $250,000. That's $150,000 he simply LOST.

Your Belongings Are Worth More Than You Think

And about that $100,000 contents limit...

Don't think you have $100,000 worth of stuff? Let's walk through your kitchen real quick:

• How many spice jars do you have at $8-12 a pop?
• How many bottles of wine at $20-50 each?
• That KitchenAid mixer? The Vitamix? The espresso machine?

And that's just one room. Now think about electronics (TVs, computers, tablets, gaming systems), furniture (that couch wasn't cheap), clothing and shoes (add it up — it's terrifying), jewelry and watches, tools and equipment in the garage, exercise equipment, musical instruments, art and collectibles...

It adds up FAST. Most people with higher-value homes have FAR more than $100,000 in belongings. And that's what you'd lose above the coverage limit.

The Solution: Excess Flood Insurance

If your home's rebuild value exceeds $250,000 — and in today's market, whose doesn't? — you need excess flood insurance in addition to your base NFIP policy.

Think of it like umbrella liability insurance. It sits on top of your primary coverage and kicks in when that runs out.

Here's how it works:

• It's a SEPARATE policy from NFIP
• Purchased from private insurers (not FEMA)
• Kicks in AFTER your primary coverage is exhausted
• Can provide coverage up to millions of dollars
• Often includes benefits NFIP doesn't cover (like additional living expenses while you're displaced)

The 30-Day Trap

Here's the other thing that catches people: flood insurance typically takes up to 30 days to go into effect.

If you wait until a storm is on the radar? Too late. Wait until your neighbor floods? Too late. Wait until the news starts showing aerial footage of flooded highways? Way too late.

The time to get flood insurance is when everything is fine and you're not thinking about it at all.

Renters: This Applies to You Too

We've seen this play out tragically in our area. Renters assume their landlord's insurance covers them. It doesn't — that covers the building, not your belongings.

And your renter's insurance? Doesn't cover flood damage either.

If you're a renter in a flood-prone area, you need separate flood insurance for your contents.

What to Do This Week

1. Check your flood zone at msc.fema.gov. Takes five minutes. Even if you're not in a "high-risk" zone, know that more than 20% of flood claims come from OUTSIDE high-risk areas.

2. Call your insurance agent and ask specifically: "Am I covered for flood damage?" and "Is my coverage enough for my home's actual value?"

3. Ask about excess flood insurance if your home is worth more than $250,000 to rebuild (hint: it probably is).

4. Document everything you own. Walk through your house with your phone. Video every room, every closet, every drawer. This is tedious, but if you ever need to file a claim, you'll be so glad you did it.

And remember: just because your area hasn't flooded recently doesn't mean it won't. Look at Washington this week. The 100-year flood line is real, and "100-year flood" doesn't mean once a century — it means there's a 1% chance every single year.