For decades, the federally backed National Flood Insurance Program has provided nearly all flood insurance in the U.S. But these days, you may have other options. A growing number of private flood insurance companies offer coverage that may be better or cheaper than what you’ll get through the NFIP.
Here’s what you need to know about private flood insurance plus a few companies to consider.
But first, a note on terminology: The NFIP sells its policies through companies like Allstate and Farmers. By “private flood insurance,” we mean policies that aren’t underwritten by the federal government and don’t have the same restrictions.
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Private flood insurance vs. NFIP
Private flood insurance is a small but growing part of America’s flood insurance landscape. The NFIP’s total premiums are about $4.6 billion per year, according to the Congressional Research Service.
In comparison, private flood insurers accounted for almost $1.3 billion in premiums in 2024, the most recent year for which data is available, according to the Insurance Information Institute.
But the NFIP’s market share advantage doesn’t mean it’s the best option for everyone. For example, the program’s coverage limits top out at $250,000 for the structure of your home and $100,000 for your belongings. These amounts may not be enough if you have a large home or expensive belongings.
Compare those limits with the offerings of Neptune Flood. This private insurer will cover your house up to $7 million and your belongings up to $500,000.
An NFIP policy won’t pay to repair a damaged swimming pool or replace items stored in your basement. Nor will it cover the expense of living in a hotel or rental if you have to move out for repairs after a flood. But these types of coverage may be available from private flood insurance companies.
🤓 Nerdy Tip
Generally, neither the NFIP nor private flood insurers will cover flood damage to your car. For that, you’ll need comprehensive coverage on your auto policy. Some private flood insurance policies come from surplus lines carriers. These are insurance companies that cover things standard insurers won’t. State regulators monitor surplus lines carriers to make sure they remain solvent.
However, surplus lines carriers don’t need to pay into a state’s guaranty fund the way standard, or “admitted,” insurance companies do. A guaranty fund will pay policyholders’ claims if an admitted insurance company goes out of business. If you have a policy with a surplus lines carrier that goes under, you won’t get the same protection.
Still not sure whether private flood insurance is right for you? Here are a few pros and cons to consider.
Pros of private flood insurance
- Coverage. Policies from private companies may offer higher coverage limits than the NFIP maximums and a broader range of coverage.
- Waiting periods. Private carriers often have a shorter waiting period than the 30-day federal window.
- Cost. Private flood insurance may be cheaper for some homeowners. Learn more about how much flood insurance costs.
Cons of private flood insurance
- Difficulty returning to the NFIP. If you drop federal insurance and buy private coverage, you may face a steep rate increase if you return to the NFIP. This is because you could lose any grandfathered subsidies or price breaks you currently have from the NFIP.
- Availability. Some private companies won’t insure all types of properties. For example, you might not be able to get a policy if you live in a mobile home or property that has had a past significant flood claim.
- Financial security. NFIP policies have the backing of the federal government, which could offer more security than a private company that could potentially go out of business.
The bottom line
Choose private flood insurance if… You have a finished basement, need more coverage than the NFIP policy will provide or want a policy quickly.
Choose a federal flood insurance policy if… You don’t need much coverage, you feel more secure with a government-backed policy or you can’t find a private company willing to insure your property.
Private flood insurance companies to consider
Below are a few widely available private flood insurance companies that may be able to cover your home. Note that these are just a starting point. An independent insurance agent may be able to help you find other alternatives in your area.
Aon Edge
About: Aon Edge claims that its EZ Flood policy saves policyholders an average of 40% over NFIP coverage. You’ll need to work with an agent to buy it.
Coverage limits: Up to $7.5 million total for your home and belongings.
Waiting periods: 15 days unless you buy your policy as part of a loan closing.
Availability: All states except Alaska, Hawaii, Kentucky and Washington, D.C.
| Coverage | Available? |
|---|---|
| Additional living expenses | ✓ |
| Basements | |
| Swimming pools | ✓ |
| Other coverage options: Replacement cost coverage for personal belongings (lower-risk flood zones only), food spoilage. | |
Beyond Floods
About: The provider behind Beyond Floods is National General, an Allstate company. It’s available through select insurance agents.
Coverage limits: Dwelling coverage up to $1.5 million, plus up to 50% of your dwelling coverage limit for your personal belongings.
Waiting periods: Seven days unless you live in Florida or New Jersey, where there’s no waiting period. You can also get coverage without a waiting period as part of a loan closing.
Availability: 30+ states.
| Coverage | Available? |
|---|---|
| Additional living expenses | ✓ |
| Basements | ✓ |
| Swimming pools | ✓ |
| Other coverage options: Detached structures, decks and handicap ramps, trees and shrubs, loss avoidance measures, loss assessment charges, fire department service charges, ordinance or law. | |
Chubb
About: Chubb specializes in coverage for high-end homes. The company will reimburse up to $5,000 for protective measures such as moving valuable items out of your home or putting sandbags around your foundation before a flood. Policies are available through independent agents.
Coverage limits: You can insure your home’s structure and contents up to a combined total of $15 million. Policies include debris removal up to $250,000.
Waiting periods: Information not available.
Availability: Information not available.
| Coverage | Available? |
|---|---|
| Additional living expenses | ✓ |
| Basements | ✓ |
| Swimming pools | |
| Other coverage options: Debris removal up to $250,000, replacement cost coverage for belongings, ordinance or law, loss assessment charges, higher-than-average limits for valuables like jewelry and art. | |
» MORE: Chubb home insurance review
Neptune Flood
About: Neptune sells flood insurance directly to customers via a sleek website offering online quotes.
Coverage limits: Up to $7 million for your home’s structure and $500,000 for your belongings.
Waiting periods: 10 days. Coverage may take effect immediately if you get it along with a mortgage or switch from another flood insurance policy.
Availability: All states and Washington, D.C.
| Coverage | Available? |
|---|---|
| Additional living expenses | ✓ |
| Basements | ✓ |
| Swimming pools | ✓ |
| Other coverage options: Detached structures, replacement cost coverage for personal belongings, loss of rental income. | |
Private Market Flood
About: Private Market Flood insurance is sold by The Flood Insurance Agency, which also offers NFIP policies. The policies are nearly identical, but the agency’s private flood insurance policy has higher coverage limits. You can get a quote and apply on the company’s website.
Coverage limits: Up to $500,000 for the building and $250,000 for your belongings.
Waiting periods: Zero to 14 days, depending on the circumstances.
Availability: Everywhere except Kentucky, New York, Washington, D.C., and Florida's Monroe County.
| Coverage | Available? |
|---|---|
| Additional living expenses | |
| Basements | |
| Swimming pools | |
| Other coverage options: FloodFLEX, which offers an additional claim payment that can be used for any purpose (including to pay for things the policy doesn't cover, such as personal items in a basement). FloodReady, which pays to replace damaged floors, walls and ceilings with flood-resistant upgrades after a claim. | |
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Frequently Asked Questions
Does the FHA allow private flood insurance to meet its flood insurance requirement?
Yes. If the Federal Housing Administration backs your mortgage and requires flood insurance for your property, you can buy it from a private flood insurer as long as the policy meets FHA requirements. Check with your lender to be sure.
Does the VA allow private flood insurance to meet its flood insurance requirement?
Yes. Private flood insurance may be acceptable for VA loans if it meets certain standards.
Is private flood insurance better than FEMA?
Private flood insurance often offers higher limits and broader coverage than NFIP policies. It may also be more affordable for some homeowners. But private insurers aren’t always willing to insure all homes.
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- 1. Congressional Research Service. A Brief Introduction to the National Flood Insurance Program. Accessed May 27, 2026.
- 2. Insurance Information Institute. Spotlight on: Flood Insurance. Accessed May 27, 2026.
