Flood insurance is a specialized policy that covers physical damage to your property and belongings caused by flooding, an event typically from standard homeowners, renters, or business insurance. As of 2026, the market is defined by a transition toward "true-risk" pricing and an expanding private sector. 1. Core Coverage Options

Most policies, especially those through the National Flood Insurance Program (NFIP) , separate coverage into two categories:

Covers belongings like furniture, electronics, and clothing (up to $100,000 for residential).

The NFIP typically pays Replacement Cost for primary residences (building only) but uses Actual Cash Value (depreciated value) for personal property. 2. Top-Rated Providers (2026) Review of U.S. Private Flood Insurance - Fitch Ratings

Covers the physical structure, including the foundation, electrical/plumbing systems, central air, and built-in appliances (up to $250,000 for residential).