Does my homeowners policy cover flooding?

No. Standard homeowners, renters, and condo policies contain an explicit flood exclusion. You need a separate flood policy through either the NFIP (federal program) or a private carrier.

Essential Chicago Flood Insurance for Every Homeowner

Why Every Chicagoan Needs Flood Coverage

The "No-Flood Zone" Myth

Think you're safe because you're not near Lake Michigan? Think again. Over 25% of all flood claims come from properties in low-to-moderate risk zones. Chicago's aging combined sewer system—some pipes over 100 years old—regularly overwhelms during heavy rains.

Your standard homeowners policy explicitly excludes flood damage. One basement flood can cost $20,000+ in repairs.

What Flood Insurance Covers

Building Property (Foundation, HVAC, Electrical)
Personal Contents (Furniture, Electronics)
Basement Cleanup (Mud & Water Removal)
Sewer Backup (Separate Endorsement Required)
Loss of Use (Private Market Only)
Excess Flood Limits (Beyond NFIP Caps)

Get Your Flood Policy Quote

Understanding Your Options

NFIP (FEMA)

The government standard. Coverage capped at $250k Building / $100k Contents. Strict definitions, 30-day waiting period, and no Loss of Use coverage. Best for basic protection in high-risk zones.

Private Flood Insurance

The modern alternative. Higher limits (often $1M+), shorter wait times (10 days vs 30), replacement cost coverage, and typically includes Loss of Use for temporary housing.

The Water Distinction

Sewer Backup (water coming up from drains) requires a home insurance endorsement. Overland Flood (water entering from outside) requires a separate flood policy. Most Chicagoans need both.

Pro Tip: As an independent agency, we quote both NFIP and private markets simultaneously. Often, private flood is cheaper with better coverage—especially in moderate-risk areas.

Garden Units & Basements

Photo by Point3D Commercial Imaging Ltd.

Essential Reading for Below-Grade Living

Chicago's beloved garden apartments and basement units face the highest flood risk in the city. Standard renters insurance typically excludes water entering from outside—meaning surface flooding and sewer overflow leave you completely unprotected.

Surface Water

Rain pooling at window wells and entry doors.

Sewer Backup

Combined sewer overwhelm during storms.

Contents at Risk

Electronics, furniture, and clothing destroyed.

Affordable Protection

Contents-only flood policies start under $300/year.

Condo Owners & The Ground Floor

Your Association's Hidden Risk

Even if your unit is on the 10th floor, you're not immune to flood damage. When the building's basement floods—destroying HVAC systems, elevators, and electrical panels—your HOA may levy a Special Assessment to cover repairs. Without proper Loss Assessment coverage, you could face bills of $10,000 or more.

Ground Floor & Basement Units

Direct Flood Exposure: Water enters through doors, windows, and walls.
Interior Damage: Flooring, drywall, and cabinetry below grade.
Loss Assessment: Your share of building-wide flood repairs.
Personal Property: Contents coverage up to your policy limit.

Master Policy Gaps

Building Flood Policy: Your HOA may carry flood insurance on common areas—but this rarely covers unit owner improvements or personal property.

Your HO-6 Policy: Standard condo insurance excludes flood. You need both an HO-6 with sewer backup endorsement AND a separate flood policy for complete protection.

Commercial & Landlord Flood Risk

Critical Warning: NFIP does not cover lost rental income. If a flood empties your building for months, you'll collect zero rent with zero insurance help. Private flood policies often include Business Income coverage.

What's at Stake

Business Income / Lost Rent
Inventory & Equipment
Machinery & HVAC Systems
Ordinance or Law (Code Upgrades)

Property Types at Risk

Multi-Unit (2-4 Flats): Basement units flood first. Lost rent from multiple units compounds quickly without coverage.

Retail & Restaurants: Basement storage, walk-in coolers, and inventory below grade face total loss risk.

Prevention & Mitigation

Protect Your Property—And Lower Your Premium

Chicago's Tunnel and Reservoir Plan (TARP)—the Deep Tunnel—helps, but it can't prevent all flooding. These improvements can reduce your risk and may qualify you for insurance discounts.

Overhead Sewer Conversion Backwater Valve Installation Sump Pump with Battery Backup

Mitigation Checklist

Install overhead sewer (city rebate available)
Add check valves on floor drains
Disconnect downspouts from sewer
Elevate HVAC and water heater
Store valuables above basement level

Excess Flood Coverage

Beyond NFIP Limits

Coverage above the $250k/$100k federal caps for high-value properties.

How It Works

Excess flood sits on top of your NFIP or primary private policy, extending limits to $1M+.

Who Needs It?

Owners of homes valued over $300k or with high-value contents and improvements.

Flood Insurance Questions

Yes—everyone is in a flood zone. FEMA designates zones by risk level (high, moderate, low), but flooding can happen anywhere. In Chicago, over 25% of flood claims come from "low-risk" zones due to sewer overwhelm and urban drainage issues. Don't let the word "low-risk" lull you into false security.

No. Standard homeowners, renters, and condo policies contain an explicit flood exclusion. This is not a gray area—flood damage is categorically excluded. You need a separate flood policy through either the NFIP (federal program) or a private carrier. We help you compare both options.

NFIP flood policies have a mandatory 30-day waiting period before coverage begins. This prevents people from buying insurance only when a storm is approaching. Private flood carriers often have shorter wait times—sometimes just 10-14 days. If you're buying a home, flood coverage can begin immediately at closing.

This is tricky. NFIP coverage for below-grade spaces is limited—drywall, flooring, and most finishes are excluded. Only essential items like furnaces and water heaters receive coverage. Private flood policies often provide better basement coverage, including finished improvements. We review the fine print so you know exactly what's protected.

Sewer backup coverage (an endorsement on your homeowners policy) covers water that comes up through your drains and toilets. Flood insurance covers water that enters from outside—through doors, windows, or rising groundwater. In Chicago's combined sewer system, both can happen simultaneously during heavy rain. Most homeowners need both coverages.

Private flood insurance is backed by A-rated carriers with strong financial stability. Many private policies offer advantages over NFIP: higher limits, replacement cost coverage, shorter waiting periods, and Loss of Use coverage. We only work with established carriers with proven claims-paying records.

Costs vary based on flood zone, property elevation, and coverage limits. In moderate-risk zones, policies often range from $400-$800 annually. High-risk zones may see $1,500-$3,000+. Private market options frequently beat NFIP pricing—sometimes by 30-40%. We quote both to find your best rate.

Yes. NFIP cannot deny coverage based on claims history—that's a key benefit of the federal program. Private carriers may be more selective about properties with multiple claims, but options typically exist. If you've installed mitigation measures (sump pump, overhead sewer), this can help with private market eligibility and pricing.

Chicago Flood Insurance