The Best Flood Insurance Companies of 2023

If there is even the most remote possibility your home could be flooded, you need the best flood insurance to protect your investment.

Best Overall

The Best Flood Insurance Companies Option: Allstate


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Best Coverage Options

The Best Flood Insurance Companies Option: Neptune


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Best Online Services

The Best Flood Insurance Companies Option: Assurant


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Homeowners who don’t live in high-risk flood zones likely don’t spend much time thinking about insurance for flooding. After all, flood insurance is for homes near rivers and lakes, or in areas at risk for hurricanes, right? In fact, this is one type of specialty insurance that homeowners will want to strongly consider have if there is even the slightest chance their home could be flooded. Why? Renters and homeowners or hazard insurance policies don’t usually cover flood damage; while homeowners insurance and a home warranty can cover some types of water damage, damage from flooding is usually excluded. In addition, if the home is located in a high-risk flood area and the homeowner has a government-backed mortgage, they are likely required to have flood insurance. Even homeowners who don’t have a government-backed mortgage or who live outside a high-risk flood area may be required by their mortgage lender to have flood insurance. Therefore, it’s essential for homeowners to understand what flood insurance is, what coverage it provides, and which companies offer the best flood insurance.

  1. BEST OVERALL: Allstate
  5. BEST AGGREGATOR: Better Flood Insurance
The Best Flood Insurance Companies Options

What to Consider When Choosing the Best Flood Insurance

When shopping for the best flood insurance, it’s important for homeowners to understand what it is and what type of flood insurance coverage they need. This includes everything from determining what flood risk zone a home is in, to how much coverage a homeowner can get, to who sells flood insurance and how to file a claim.

Flood Risk Zone

A homeowner needs to know their flood risk zone in order to determine how much flood insurance coverage they might need. The flood risk zone for a specific area can be found through the Federal Emergency Management Agency’s (FEMA) Flood Map Service Center. (Homeowners may also see this referenced as a FEMA FIRM map.) The map will show a home’s proximity to flood risk zones, typically including a body of water such as a lake, river, or coastline. However, it’s important to note that a home doesn’t have to be located near a body of water to be at risk for flood damage. Heavy rains, poor drainage, or road or other construction projects could lead to flood damage. In fact, according to FEMA, a FEMA flood map that shows any location with a 1 percent chance or higher of experiencing a flood each year is considered a high-risk area. Per FEMA, those areas have a minimum 1-in-4 chance of flooding during the term of a 30-year mortgage. Compared to the high costs to rebuild a home, flood insurance begins to seem like a pretty good investment for many homeowners.

NFIP vs. Private Flood Insurance

Flood insurance is offered through two avenues: purchasing a federal plan through FEMA’s National Flood Insurance Program (NFIP) or through a private flood insurance company. If a homeowner’s community participates in the NFIP, the NFIP must provide coverage to any homeowner who applies. Private flood insurance companies, though, have no such requirement. Flood insurance policies through the NFIP have coverage limits that may vary from those offered by private flood insurance companies. If a homeowner has a high-value property, private flood insurance may be the better choice to get the coverage a homeowner needs to repair or rebuild their home, or replace their personal belongings.

Home Residency Status

When applying for flood insurance, a homeowner will need to declare their home residency status, which will be either a primary residence or a principal residence. A primary residence is a home that’s occupied for at least 51 percent of the year, whereas a principal residence is a home used for 80 percent of the year or more. The designation determines how any claim will be paid.

If a homeowner wants to receive the replacement cost of the home in the event of a loss, the home must be their principal residence, and they must have coverage for at least 80 percent of the home’s full replacement cost or the maximum insurance coverage available from an NFIP policy. If the home is listed as a primary residence, any claim will be paid using the actual cash value of the structure, which only pays to repair or rebuild the home at its depreciated value.

Coverage Limits

When purchasing NFIP flood insurance, it’s important to note that a policy has specific coverage limits. A homeowner can buy a policy covering up to $250,000 of damage to the home’s actual structure. This includes damage to the furnace, water heater, HVAC system, and any flooring such as tile, carpet, or hardwood. It also covers debris removal and cleanup from the damage. Not all policies cover basements, crawl spaces, or ground-level enclosures, so homeowners will want to talk with their insurance agent to see if the entire home will be protected.

Homeowners can purchase a separate NFIP policy covering their personal belongings inside the home. The coverage limit for this type of policy is $100,000 and covers clothes, furnishings, appliances, and other personal property. Personal property is typically covered at actual value cost, which means the insurance provider will pay the depreciated cost of items damaged or destroyed by a covered event (less the deductible) rather than the cost to replace the items at market value.

Coverage limits for the structure of the home and personal property may be different for homeowners who have a private flood insurance policy. If the cost of replacing the home and personal property exceeds the NFIP policy coverage limits, homeowners may need to purchase additional flood insurance from a private flood insurance company to get the amount of coverage they need.

Service Area

NFIP flood insurance policies are available only to residents who live in communities that have adopted and enforced specific floodplain management regulations that adhere to the NFIP’s minimum requirements. These communities are found to have high-risk flood areas called Special Flood Hazard Areas (SFHAs), which have a 1 percent chance of flooding within a given year.

If a homeowner does not live in a participating NFIP community, they can still purchase flood insurance, but they’ll have to buy it from a private flood insurance company. According to FEMA, more than 40 percent of flood claims from 2015 to 2019 were filed for properties outside high-risk flood areas. Homeowners can talk with insurance agents in their area to see if private flood insurance is a good option.

Quote and Claims Processes

When shopping for any kind of insurance, it’s crucial for homeowners to speak with several insurance companies; this is no different when getting a flood insurance quote. Quotes are based on several factors, including the home’s age, design, and location; if the property is a principal or primary residence; the flood zone at or around the home; the amount of coverage; and the deductible on the policy.

To file a claim for flood insurance, a homeowner will need to report the damage to their insurance company as soon as possible. Typically, they will need to report a claim within 60 days of the date of the flood damage or their claim may be denied. The insurance company will likely provide information regarding a homeowner’s specific policy regarding claim procedures and all necessary forms required with the claim.

Waiting Period

Most flood insurance policies include a waiting period, so a homeowner can’t purchase a policy if a storm is expected within a few days. All NFIP policies have a 30-day waiting period. The only exception is if a homeowner purchased an NFIP flood insurance policy at the same time they bought a new home. If purchasing a private flood insurance policy, homeowners will want to check with their agent to see whether their policy has a waiting period (and if so, how long it is). Some private flood insurance policies do not have a waiting period before homeowners can make a claim.

Replacement Cost vs. Actual Cash Value Coverage

Most flood insurance policies have two coverage options: replacement cost coverage and actual cash value coverage. If a homeowner selects replacement cost coverage, the policy will pay to replace or repair the damaged items regardless of cost up to the policy’s coverage limit, less the deductible.

If a homeowner selects actual cash value coverage, the policy will pay a depreciated value of the damaged items. For example, if a homeowner chooses actual cash value coverage and the water heater needs to be replaced, the policy will pay an amount equal to what the existing water heater is valued for at the time of the claim, rather than the amount it would cost to purchase a new version of the exact same water heater. Policyholders with actual cash value coverage will likely need to pay some money out of pocket to replace damaged items with new ones in like condition, or settle for lower-quality items.

When looking at coverage costs, homeowners will find that replacement cost coverage typically costs more than actual cash value coverage.


To lower the cost of flood insurance, homeowners can speak with their current homeowners insurance company to see if they can reduce their flood insurance and homeowners insurance costs with a bundling discount. Insurance companies that also offer auto insurance also may offer a discount for bundling car insurance with flood insurance.

Another way to lower flood insurance premiums is for homeowners to literally raise their homes. In fact, according to FEMA, elevating a home is the fastest way to reduce flood insurance rates. If a homeowner lives in a high-risk flood area, raising the home’s elevation just 1 foot higher than the area’s base flood elevation (BFE) could reduce the annual flood insurance premium by up to 30 percent.

Excess Flood Coverage

Excess flood insurance coverage refers to additional coverage beyond the original flood insurance policy. Typically, this is a private flood insurance policy that provides additional coverage once the homeowner’s NFIP policy reaches its coverage limits. If a homeowner lives in a high-risk flood zone and still has a mortgage on their home, their mortgage lender could require them to purchase this excess flood insurance coverage.

Even if a homeowner is not required to purchase excess flood coverage, they may want to do so to protect their investment. For example, if a home will cost $500,000 to rebuild it and a homeowner has an NFIP policy with a coverage limit of $250,000, they likely will need a private flood insurance policy for $250,000 to ensure they have the funds they need to rebuild their home.

AM Best Rating

AM Best is a credit rating agency specializing in insurance agencies. The company measures the insurer’s creditworthiness and financial strength to determine the likelihood that they will be able to pay out claims. AM Best insurance ratings have a unique ranking system, which ranges from the highest A++ (“Superior”) to D (“Poor”). In general, choosing an insurance company with an AM Best rating of at least B+ (“Good”) can assure homeowners that the company is likely to be able to pay out claims if and when they are made.

Our Top Picks

Companies available nationwide with solid AM Best ratings and good coverage options ended up at the top of our list.

Best Overall


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  • NFIP: Yes
  • Service area: 50 states and Washington, D.C.
  • Quote process: Online, phone, or through an agent
  • Claim process: Online or phone
  • AM Best rating: A+


  • Plans are highly customizable, especially when working with an agent
  • Policyholders can bundle vehicle, home, and life insurance policies
  • Unique excess coverage options including sewage and drain backup and lawn and garden coverage
  • Many free informational resources available on the provider website


  • Costs may be higher than those of competitors

Why It Made the Cut: Allstate flood insurance offers diverse bundling options, unique coverage features, and customizable plans, so homeowners get the exact coverage they need from a trusted company. Allstate offers high levels of customization in its flood insurance policies, especially when customers work with an agent in-person. This helps homeowners get the right coverage for their needs. In addition, homeowners can receive extra savings on their insurance premiums when they bundle flood insurance with their vehicle, home, and life insurance policies. Allstate’s prices may be relatively higher than others on the market, but the company offers coverage that many others don’t. This includes coverage for sewage and drain backup as well as lawn and garden coverage to repair the yard once the debris is removed. Allstate’s website has many free informational resources available for homeowners that break down confusing insurance jargon in a digestible manner.

Best Coverage Options


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  • NFIP: No
  • Service area: 48 states and Washington, D.C.
  • Quote process: Online, phone, or through an agent
  • Claim process: Phone
  • AM Best rating: A


  • Comprehensive asset coverage, including basement and temporary living arrangements
  • Home structure can be insured for up to $4 million and contents up to $500,000
  • Pictures and elevation certificates not required to file a claim


  • Policyholders must file claims by phone

Why It Made the Cut: Neptune offers some of the highest coverage limits, meaning homeowners can get the additional coverage they need for their homes. Because Neptune is not an NFIP flood insurance policy provider, it can offer higher coverage limits so homeowners can receive the coverage they need for their homes and belongings. The structure coverage limit is $4 million, and the personal property limit is $500,000. The policy also may include coverage for a basement as well as temporary living arrangements. While homeowners can only file a claim by phone, which could be problematic if phone lines are down after a natural disaster, they aren’t required to submit photos or elevation certificates when filing a claim.

Best Online Services


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  • NFIP: Yes
  • Service area: 50 states and Washington, D.C.
  • Quote process: Online, phone, or through an agent
  • Claim process: Online, phone
  • AM Best rating: A


  • Streamlined online quote and claims process
  • FlexCash program provides up to $10,000 in discretionary funds
  • Private flood policies available for flexible coverage


  • Prices may be higher than those of competitors

Why It Made the Cut: Assurant offers both NFIP and private add-on policies so homeowners can get all the coverage they need from one company. With Assurant, homeowners can get policy quotes online for both an NFIP policy and private add-on policies, giving them a good idea of how much flood insurance coverage will cost for their needs. Assurant’s prices are relatively high, but the company offers a lot for the price. Homeowners file a claim online, expediting the claims process and ensuring homeowners get their payouts sooner. And, when filing a claim, if a homeowner’s policy includes the FlexCash program, they could receive up to $10,000 to use for travel and hotel costs if a homeowner is displaced from their home, whether for a few days or an extended period.

Best for Military Members


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  • NFIP: Yes
  • Service area: 50 states and Washington, D.C.
  • Quote process: Online or phone
  • Claim process: Online or phone
  • AM Best rating: A++


  • Policyholders can earn discounts for going extended periods without filing a claim
  • Prices typically fall below the national average
  • Policyholders can bundle with vehicle, home, life, and health insurance


  • Applicants must be current or former members of the military, or a family member

Why It Made the Cut: USAA may offer the lowest rates for flood insurance coverage for active or retired military members and their families. With an AM Best rating of A++, USAA customers can feel confident that their claims will be paid. USAA typically offers flood insurance coverage at rates below the national average, with additional savings possible for homeowners who bundle flood insurance coverage with vehicle, home, life, and health insurance. Additionally, if homeowners carry flood insurance but don’t file any claims for an extended period, they could receive additional discounts on their premiums. USAA is only available to current or former military members and their families, but it’s a great insurance option to look into if a homeowner qualifies for the coverage.

Best Aggregator

Better Flood Insurance

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  • NFIP: N/A
  • Service area: 50 states and Washington, D.C.
  • Quote process: Online or phone
  • Claim process: Varies by policy
  • AM Best rating: N/A


  • Third-party company that searches for lowest prices
  • Thorough online quote system
  • Instant pricing estimate and helpful online comparison tool


  • Policyholders may need to provide an elevation certificate to file a claim

Why It Made the Cut: Better Flood Insurance searches for the best flood insurance policy for a homeowner, saving time and money. Searching for flood insurance can be confusing and time-consuming, but Better Flood Insurance does the work for homeowners to find the best coverage options available to them. Using its comprehensive online quote system, Better Flood Insurance will search for flood insurance companies that cover a homeowner’s area and provide the coverage they need for their home and personal belongings. Search results include an instant pricing estimate and helpful online comparison tool so homeowners can see which companies offer the coverage they want at a price they can afford. However, some companies may require homeowners to provide an elevation certificate, which is an extra step in the process. But for homeowners who want to ensure they’re getting the best deal, Better Flood Insurance’s tools can help them be more confident in their decisions.

Our Verdict

For a flood insurance policy that checks all the boxes, Allstate is our Best Overall choice. We chose Neptune for Best Coverage Options because of the higher coverage limits homeowners may need.

How We Chose the Best Flood Insurance Companies

In our research, we reviewed dozens of flood insurance companies and looked for ones that served a nationwide base to ensure the coverage plans would be available to most consumers. Because most flood insurance plans are sold through the NFIP, we reviewed companies that sold NFIP plans, but we looked at private flood insurance companies as well since some homeowners need higher coverage limits (and some may simply choose to take out a private policy rather than an NFIP policy).

We also looked for companies with high AM Best ratings to ensure they would likely follow through on customer claims and deliver excellent customer service. Offering easy access to quotes and claims processing also was an important consideration.

Before You Choose One of the Best Flood Insurance Companies

First and foremost, not every homeowner or renter needs flood insurance. Therefore, these companies may not be suitable for a homeowner’s insurance needs. Homeowners can check the FEMA flood maps to see the flood risk for their home’s location, although they’ll want to keep in mind that even if a home in a low- to moderate-risk area may still need flood insurance coverage. Homeowners can speak with a local insurance agent to determine whether flood insurance is necessary for their home and personal belongings and, if so, what type of coverage they need. Then homeowners can review the best flood insurance companies listed here to see if one is the right fit.

Cost of Opting for One of the Best Flood Insurance Companies

The cost of flood insurance coverage from one of the best flood insurance companies will vary based on several factors. These include the age, design, and location of a home; the flood zone area; the amount of coverage; and the policy deductible. It also depends on the specific flood insurance company a homeowner selects for their policy.

Some companies offer more varied or unique coverage options than their competitors, which could be more expensive. Also, some companies may offer additional discounts, making them a more affordable option. It’s important for homeowners to compare all coverage options, deductibles, and discounts to see which companies offer the best flood insurance for their budget.

The Advantages of Opting for One of the Best Flood Insurance Companies

Opting for one of the best flood insurance companies means the homeowner can be confident that their chosen company has strong finances, a solid reputation, and straightforward quote and claims processes. Flood damage can cause a lot of stress for a homeowner, and one of the last things they want is additional pressure from dealing with a less-than-stellar insurance company. Some of the benefits of choosing one of the best flood insurance companies include:

  • Online quotes so homeowners can easily get an idea of their premiums and coverage options.
  • Strong AM Best ratings to signify solid financial status and likelihood of timely payouts.
  • Easy claims filing to reduce stress after a flood.


Shopping for flood insurance can be confusing, especially considering homeowners may be required to get specific coverage for their homes and personal belongings. Knowing what flood insurance is and what coverage a homeowner may need before shopping can help alleviate confusion when talking with the best flood insurance companies. The following commonly asked questions about flood insurance can help educate homeowners on this type of coverage so they feel more confident as they begin shopping around for quotes.

Q. What is the difference between private flood insurance and NFIP?

NFIP insurance is backed by FEMA and has lower coverage limits. Private flood insurance is offered by private insurance companies and often has higher coverage limits. Not all homeowners will be eligible for NFIP insurance.

Q. How do I know if I need flood insurance?

Checking a FEMA flood zone map can let a homeowner know if their home is in a flood zone, even if it’s a low- or moderate-risk zone.

Q. How much should I pay for flood insurance?

Flood insurance costs vary based on several factors; however flood insurance costs typically range from $1,000 to $1,500 per year, with homeowners paying an average of $738.

Q. Do I pay monthly or annually for flood insurance?

A homeowner’s specific flood insurance company will dictate how they pay for their flood insurance premiums. Some companies offer installment options, while others do not.

Q. Is flood insurance tax deductible?

Unless a homeowner uses all or part of their home for business purposes, such as renting out your home, they cannot deduct flood insurance from their personal taxes.

Q. What is the difference between flood zone A and AE?

Flood zone A is a high-risk flood zone without a base flood elevation, while flood zone AE does have a base flood elevation. Both areas have a 1 percent chance of flooding each year.

Q. Does flood insurance cover a hurricane?

Flood insurance can cover water damage resulting from a hurricane, such as flooding due to a storm surge.

Q. Does my state require flood insurance?

Flood insurance requirements depend upon the state where the homeowner lives. For instance, not every homeowner is required to have flood insurance in Florida. However, there are certain Florida homeowners whose mortgage lenders require them to have flood insurance. If a homeowner is not certain whether they need flood insurance, it’s advised that they talk with someone in their state’s insurance commissioner office.

Karon Warren Avatar

Karon Warren

Contributing Writer

Writing for since 2021, Karon Warren has covered home insurance and home loan topics for more than 15 years. She also routinely writes about mortgages, car insurance, and personal finance.