Flood Insurance

In California, we have a lot of special flood zones, and if you live in any of them - you know that Flood insurance is a must

Flood Insurance

Flood Insurance is a separately purchased policy and is not part of any Homeowners, Condo, Landlord, or Renters insurance policy. Many assume that flooding-related damage is covered under their standard Home insurance policies, only to discover during a claim that it is excluded.

Water Damage Covered By Home Insurance

A standard Homeowners insurance policy covers some water damage but usually excludes most flooding damage. Here are a few examples of water damage covered under the Homeowners, Condo, or Landlord policy:

The policy typically covers damages caused by falling water from (“up to down”) the sky.
If you accidentally left a window open over the weekend, and heavy rainfall damaged your floors and furniture, it is usually covered.
If a roof leak during rain causes water to seep into your house and cause damage, the policy generally provides coverage.

Water Damage Covered By Flood Insurance

However, Home insurance policies typically exclude rising water (“down to up.”) This exclusion applies in scenarios such as:

Living by a river or lake where water levels rise after a week of non-stop rain, leading to flooding in your house.
Residing in the city, where weeks of rain cause the sewage system to overflow, resulting in rising water that floods your home.

Another cause of loss not covered by the typical Homeowners policy is a mudslide. This occurs when excess water softens the ground, causing mud to slide down the hill and damage your building.

Flood Insurance in California: Compare NFIP and Private Flood (Neptune)

California floods don’t wait for “high-risk zones.” Atmospheric rivers, king tides, burn-scar runoff, and overwhelmed storm drains can all push water into homes – even outside Special Flood Hazard Areas. This guide explains how Flood insurance works, what it covers, the difference between NFIP (the federal program) and Neptune (get a quote here) (private Flood), and exactly how to file a claim if you ever need to.

Who needs Flood insurance in California?

You don’t have to live in a designated flood zone to suffer flood damage. We routinely see losses from heavy winter storms, coastal tidal events, and post-wildfire runoff. Lenders typically require Flood insurance in higher-risk zones. Still, many serious claims occur outside them, which is why it’s smart to evaluate coverage even if your lender doesn’t require it.

Two paths to coverage: NFIP and Neptune (private Flood)

Availability and purpose

NFIP is the federal program available in participating communities and is widely accepted by mortgage lenders.
Neptune is a private Flood option that often provides broader optional coverages and a shorter standard waiting period, while still meeting lender requirements.

When your policy starts (the waiting period)

Standard rule: NFIP policies usually start 30 days after purchase; Neptune’s standard wait is 10 days.
Exceptions (both programs): No waiting period for policies tied to a loan closing or an eligible rollover/transfer from another Flood policy with no lapse.

Why clients consider Neptune as an alternative to NFIP

Faster standard start date (10 days vs. 30).
Optional endorsements (see below) that go beyond NFIP’s baseline.
Financial backing: Neptune uses multiple A-rated (AM Best) reinsurance partners, so it doesn’t carry the entire risk. Because Neptune spreads its risk across, one severe storm is less likely to overwhelm a single company, helping keep claims dollars available when many homes are hit at once. In plain English: it’s a stronger safety net behind your policy.
Market conditions can change quickly. For example, Neptune recently highlighted its role during an NFIP lapse/shutdown period – another reminder that private flood options can keep writing when federal programs pause.

What Flood insurance covers (plain English)

Flood insurance protects against direct physical loss from flooding – a temporary inundation of normally dry land by water or mudflow.

Building (your home’s structure) typically includes the foundation, walls, built-in appliances, electrical/plumbing systems, central HVAC, water heaters, and (in basements) certain building items such as drywall and insulation as specified by policy. (Exact lists vary by program/form.)

Contents (your belongings) commonly include clothing, furniture, electronics, rugs, and other personal items located in covered areas of the home (with some limitations for items in a basement – see the next section).

Basements: what’s covered

Under NFIP rules, basement coverage is limited. NFIP covers only a short list of basement items. Examples include:

Clothes washers and dryers
Food freezers and the food in them (not refrigerators)
Portable/window air conditioners (building-system components like furnaces and water heaters fall under building coverage)

Personal property that would be covered elsewhere in the home may not be covered if it’s stored in a basement. So, things like sofas, TVs, area rugs, finished-basement improvements (e.g., paneling, built-ins), and most furniture are generally not covered by NFIP when located in a basement.

Neptune option: You can add Basement Contents coverage that expands the list of covered basement items beyond the NFIP-limited set (up to the endorsement limit). This is helpful for homes with finished or storage-heavy basements.

Popular private Flood (Neptune) add-ons

Depending on eligibility, Neptune lets you tailor protection with endorsements such as:

Temporary Living Expenses (also called ALE): This coverage helps pay for additional housing and essential living costs if your home is uninhabitable after a covered flood.
Unattached/Other Structures (e.g., a detached garage or shed), with limits in addition to your Dwelling limit.
Pool Repair and Refill for in-ground pools (NFIP excludes pools).
Basement Contents (as noted above).

How pricing works

Flood premiums reflect your property’s location and flood exposure, the home’s characteristics, and the limits and options you choose.

Location and exposure: Proximity to coasts, rivers, creeks, drainage systems, and past flood activity matters because it changes the likelihood and severity of flooding. These risk signals are part of the modern rating for both NFIP and private Flood.
Home construction and elevation: Foundation type (slab, crawlspace, basement), the home’s elevation relative to the surrounding grade, and how water would enter the structure all influence risk and price.
Coverage limits you select: Higher building and contents limits increase the premium. Be sure your limits reflect current replacement costs and what you actually own.
Optional endorsements: Adding Temporary Living Expenses, Unattached Structures, Basement Contents, or Pool Repair/Refill increases protection and will adjust the premium accordingly.
Deductible choice: Choosing a higher Deductible generally lowers your premium but increases your out-of-pocket cost if you have a claim. Pick a Deductible you can comfortably afford at claim time.

How to file a flood claim

If you experience a flood loss, safety comes first. Avoid standing water near outlets, document the damage with photos/video, and take reasonable steps to prevent further damage if it’s safe to do so. Then contact your carrier using the information below.

Neptune Flood (private Flood)

Call: 727-202-4815 (claims line)
24/7 online/chat: Start a claim via the Poseidon chatbot on Neptune’s site
Email (support): support@neptuneflood.com
You can begin a claim anytime by phone or via chatbot; both feed directly into Neptune’s claims intake.

Selective Flood (NFIP carrier/servicer)

Online (24/7): File a flood claim through Selective’s claims portal
Phone (flood claims): 877-348-0552
Email: floodclaims@selective.com

Final note and easy next step

Please contact us today for a free quote and consultation about your Flood insurance needs, or feel free to get a quote on your own with Neptune using the “Get A Quote” button below.