When you look out your window on a sunny day in New England, flooding is probably the last thing on your mind. Yet, water damage remains one of the most common and costly risks for homeowners and renters alike. Despite the prevalence of floods, many people operate under dangerous misconceptions about how they are protected—or rather, how they aren’t.
There is a significant gap between what people believe their insurance covers and the reality of their policies. This confusion often leads to devastating financial consequences when disaster strikes. At John J. Walsh Insurance Agency, we believe that informed clients are protected clients. It is time to clear the muddy waters surrounding flood insurance.
In this guide, we will tackle the most persistent myths about flood insurance. We will explain why you might be more at risk than you think, what is actually covered, and how to ensure your home and belongings are safe from rising waters.
Myth 1: "My Homeowners Policy Covers Flooding"
This is perhaps the single most dangerous myth in the insurance world. Many conscientious homeowners believe that because they have a comprehensive homeowners insurance policy, they are protected against all forms of water damage.
The Reality: Standard homeowners and renters insurance policies almost never cover flood damage.
While your standard policy might cover water damage from "internal" sources—like a burst pipe or a malfunctioning appliance—it typically excludes water that comes from the "outside." This includes overflowing rivers, storm surges from hurricanes, heavy rain pooling in your yard and entering your basement, or snowmelt. To be protected against these events, you must purchase a separate flood insurance policy. Relying solely on your homeowners policy leaves you completely exposed to the financial ruin that a flood can bring.
Myth 2: "I Don't Live in a High-Risk Zone, So I Don't Need It"
You might look at a flood map, see that you are outside the designated high-risk flood zone (often called a Special Flood Hazard Area), and breathe a sigh of relief. You might think, "I'm not near the ocean or a river, so I'm safe."
The Reality: Floods can happen anywhere, not just in high-risk zones.
According to the Federal Emergency Management Agency (FEMA), approximately 25% of all flood insurance claims come from areas with low-to-moderate flood risk. Weather patterns are changing, and storms are becoming more unpredictable. Poor drainage systems, rapid snowmelt, and new construction that alters land topography can all cause flooding in areas that have never seen water before. Mother Nature doesn't look at flood maps. Living outside a high-risk zone means your risk is lower, not zero.
Myth 3: "Flood Insurance Is Too Expensive"
Many people avoid investigating flood insurance because they assume the premiums will be astronomical. They view it as a luxury add-on rather than a necessity.
The Reality: Flood insurance is often more affordable than you think, especially in lower-risk areas.
If you live in a moderate-to-low-risk area, you may qualify for a Preferred Risk Policy, which offers the same coverage at a significantly lower cost. Even in higher-risk zones, there are ways to manage costs, such as elevating your home or installing flood vents.
Compare the cost of a premium to the cost of recovery. Just one inch of water in a home can cause upwards of $25,000 in damage to your flooring, drywall, furniture, and personal belongings. Paying a few hundred dollars a year for a policy is a small price to pay compared to draining your savings to repair a flooded home.
Myth 4: "Federal Disaster Assistance Will Pay for Everything"
Some homeowners decide to "roll the dice," believing that if a major flood hits, the federal government will step in with disaster assistance to make them whole.
The Reality: Federal disaster assistance is not a guarantee, and it is not a handout.
First, federal disaster assistance is only available if the President formally declares a disaster. Floods often occur in localized areas that don't meet the threshold for a federal declaration. Second, most disaster assistance comes in the form of low-interest loans from the U.S. Small Business Administration (SBA). These are loans, not grants, meaning you have to pay them back with interest—on top of your existing mortgage.
Grants that don't need to be repaid are rare and are typically designed only to make a home safe and sanitary, not to restore it to its pre-flood condition. Flood insurance pays out even if there is no federal disaster declaration and does not need to be paid back.
Myth 5: "I Can Buy Flood Insurance Right Before a Storm Hits"
When the weather forecast predicts a hurricane or torrential rain, phones at insurance agencies often start ringing. People want to buy coverage immediately before the storm arrives.
The Reality: There is almost always a 30-day waiting period.
Most flood insurance policies, including those through the National Flood Insurance Program (NFIP), have a mandatory 30-day waiting period before the coverage takes effect. If you buy a policy today, and a storm floods your house next week, you will not be covered. There are very few exceptions to this rule (such as if you are buying a new home with a mortgage).
This waiting period prevents people from buying insurance only when danger is imminent and canceling it afterward. The lesson here is simple: Do not wait for the storm clouds to gather. The time to buy flood insurance is when the sun is shining.
Myth 6: "Renters Can't (or Don't Need to) Get Flood Insurance"
Renters often assume that the landlord's insurance covers the building and everything inside it. Or, they might think flood insurance is only for property owners.
The Reality: Your landlord's insurance covers the building, not your stuff.
If your apartment floods, your landlord is responsible for fixing the walls and floors, but they are not responsible for your furniture, electronics, clothes, or valuables. Renters can purchase contents-only flood insurance to protect their personal belongings. These policies are typically very affordable and provide essential protection for your assets. If you live on a ground floor or in a basement apartment, this coverage is absolutely critical.
Need Flood Insurance in MA? Contact John J Walsh Insurance Today!
978-745-3300. 
