How to Choose the Best Flood Insurance

You’re ready to buy flood insurance — but where should you begin? You could turn to one of the many flood insurance companies selling policies from the National Flood Insurance Program. However, private flood insurance, from providers unaffiliated with the NFIP, might be a better option. Here’s how to find the best flood insurance for your home in four steps.

1. Check what’s available

The most common source of flood insurance is the National Flood Insurance Program, part of the Federal Emergency Management Agency. The NFIP partners with dozens of providers, including several of the nation’s largest home insurers, to sell its policies.

You’re eligible for NFIP coverage as long as you live in one of the program’s thousands of participating communities.

You may also have the option to buy private flood insurance instead. (A note about terminology: NFIP policies are technically sold by companies such as Farmers and USAA. By "private flood insurance," we mean policies that aren’t underwritten by the federal government or bound by its requirements.)

An independent insurance agent or broker can help you find alternatives to the NFIP in your area.

» MORE: Do you need flood insurance?

2. Determine your coverage needs

Several factors will determine how much flood insurance you need and where to buy it.

Your mortgage lender’s requirements

If you’re getting flood insurance as a condition of a mortgage, make sure you know how much coverage your lender requires. For example, you may need enough flood insurance to cover the outstanding balance on the loan.

Keep in mind that the amount your lender requires may not be enough to protect you financially. For instance, your bank might mandate insurance only for the structure of your home, not your belongings. But if a flood damaged all your furniture, could you afford to replace it? If not, you might want to buy flood insurance for your belongings (sometimes called “personal property” or “contents”).

» MORE: How much does flood insurance cost?

Coverage limits

The NFIP's maximum coverage limits are $250,000 for your home and $100,000 for your belongings. If you have a large home, these limits might not be enough to rebuild the house or replace damaged belongings after a major flood.

A type of supplemental policy known as excess flood insurance is one way to bridge the gap. Although excess flood insurance is compatible with NFIP plans, you must buy it separately from companies such as Wright Flood or Aon Edge.

Alternatively, you may want to look into private flood insurance. These policies often have higher coverage limits than the NFIP.

What coverage you need

The standard NFIP policy has a few major exclusions. For instance, it won’t pay if you need to stay in a hotel while your home is being repaired after a flood. Got a deck or pool? The NFIP won't cover those either.

Here’s a quick summary:

Private flood insurers may offer coverage for some of the things the NFIP excludes.

» MORE: Flood insurance: What it is and what it covers

3. Shop around

If both options are available to you, try to get quotes from both the NFIP and private insurers. (An agent or broker can help.) Note that all NFIP partners offer the same coverage and rates, so you don’t need to shop around with multiple FEMA-approved providers.

Try to look at policies with similar coverage limits and deductibles to ensure the fairest rate comparison. That said, a more expensive private flood insurance policy with better coverage may be worth it to you.

Not sure whether NFIP or private insurance is right for you? Here’s a breakdown to help you choose the best flood insurance.

» MORE: Complete guide to hurricane insurance

4. Choose the best flood insurance company

Once you’ve opted for an NFIP policy or a private insurer, here’s how to choose where to buy your policy.

NFIP

Although there’s no price variation among NFIP partners, it’s wise to buy your policy through an insurer with strong customer service. Below are FEMA-approved flood insurance providers that NerdWallet has rated at least 4 out of 5 stars.

You can also ask your existing insurer if it sells flood insurance. Buying all your policies from one company may be the most convenient option.

You can find a full list of NFIP flood insurance providers in your state on FloodSmart.gov.

» MORE: Flood insurance for renters

Private flood insurance

You may want to use a little more caution when choosing a private flood insurance company. Unlike NFIP coverage, which has U.S. government backing, private flood policies are issued by companies that could go out of business. Do some homework to make sure the company you choose will be around if you need it.

Some private flood insurers are surplus lines carriers, which means they cover risks standard insurers won’t. They don't have to contribute to a state’s guaranty fund, which pays policyholders’ claims if a standard company goes out of business. So if a massive storm hits your region and your surplus lines carrier can’t afford to settle its claims, you may not get the payout you were expecting.

That said, the industry isn't a free-for-all. State and other regulatory agencies oversee surplus lines carriers and the brokers who sell their policies. Surplus lines carriers don’t go out of business often, according to the National Association of Insurance Commissioners

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National Association of Insurance Commissioners. Surplus Lines. Accessed May 28, 2026. View all sources .