Is flood insurance required in New Jersey?

Individual states do not mandate that homeowners carry flood insurance, but your lender might if you have a mortgage. If you live in a flood-prone area or if your property faces flood risk due to other variables, it may be wise to consider purchasing flood insurance. New Jersey faces unusually high levels of flood risk compared to other states. Consider speaking with your insurance agent about your area’s flood risk and potential options for securing coverage.

I have homeowners insurance already. Am I covered for a flood?

No, homeowners insurance does not typically cover flood damage. Renters insurance policies typically do not either. If you live in a high-risk flood area and want to protect your financial health, experts recommend adding flood coverage. This may be purchased through your current homeowners insurance provider, through an insurer in the NFIP network or through a separate private provider. In some rare cases, flood insurance may be available as an endorsement, but it usually requires a separate policy.

FEMA already provides disaster relief for floods. Why do I need coverage?

While FEMA does provide disaster assistance for floods that have been declared an emergency, it does not provide assistance for all flooding events. Additionally, FEMA emergency grants are not a replacement for insurance coverage, and the amount you receive could be far less than you would need to repair your home. That’s why most insurance experts recommend that at-risk homeowners secure flood coverage. A flood insurance claim may be paid out regardless of whether the president has deemed the situation an emergency.

How do I get a New Jersey flood insurance quote?

There are multiple ways homeowners can get a quote when looking for the best flood insurance in NJ. You can check and see if your current home insurance company offers flood insurance, either through a partnership with the NFIP or its own privately underwritten policies. If your home insurance provider does not offer flood insurance of any kind, you can look at the list of NFIP-affiliated flood insurance providers. Or, if you need higher coverage limits than what the NFIP offers, you can get a quote from a private flood insurance company.

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New Jersey flood insurance: What homeowners should know

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Updated Nov 13, 2024

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Do you need flood insurance in New Jersey?

Similar to home insurance, flood insurance is not required by law. However, your financial institution might require both home insurance and flood insurance as a condition of your mortgage. Regardless, purchasing flood insurance in New Jersey could be wise, even if you're not near the shore.

Historical data from the Federal Emergency Management Agency (FEMA), which oversees the National Flood Insurance Program (NFIP), show that every county in New Jersey experiences upward of 50 flood events a year. Flood damage can add up quickly, too. FEMA suggests that a single inch of floodwater can cause a home to suffer $25,000 in damage. Importantly, flood damage is almost never covered by your home insurance policy; in order to be financially protected from a flood, you'll need a separate flood insurance policy or endorsement.

If you are unsure about your home's flood risk, you can look at FEMA's flood mapping tool to determine your home's flood zone. Your flood zone, usually expressed as a combination of numbers and letters, can provide helpful insight into your community's flood history. Other online tools like FloodFactor may be useful, as well.

Cost of flood insurance in New Jersey

How much flood insurance is in NJ will largely depend on your home's flood risk and how much coverage you need. FEMA uses the Risk Rating 2.0 system to assess homeowners’ risk and calculate flood insurance premiums. For reference, the national average cost of a flood insurance policy in the United States is $800 per year, while the average annual cost in New Jersey is $1,274. However, your premium will vary depending on key factors, such as:

Location
Flood risk
Coverage options selected
Age and design of the home
Deductible amount
Amount of building/contents coverage
Home value

What is the Community Rating System (CRS) in New Jersey and how does it work?

The Community Rating System (CRS) is an optional program offered by the NFIP. Under the CRS, communities that make an effort to mitigate flood damage and actively manage floodplains could be rewarded with a discount on NFIP flood insurance premiums. Currently, over 100 communities in New Jersey participate in the CRS and over 90 are eligible for a discount. You can check FEMA's website for a comprehensive list of participating communities and potential savings.

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When to purchase New Jersey flood insurance

When it comes to purchasing New Jersey flood insurance, the sooner the better. Before major storms, many insurers issue a moratorium on flood policies, which prevents homeowners from buying them in the days leading up to a severe weather event. Additionally, most flood insurance providers have a waiting period before coverage becomes effective. For example, NFIP policies have a 30-day waiting period. Many insurance experts recommend purchasing your home and flood insurance policies as soon as you purchase your home.

How to purchase flood insurance in New Jersey

You can obtain a New Jersey flood insurance quote one of two ways: through the NFIP or through a private insurer. Both are effective ways of purchasing a flood policy. It is possible that your insurance provider either partners with the NFIP to sell policies or underwrites its own private ones. In that case, you can reach out to a licensed company representative to request a quote. If your home insurer does not offer flood insurance, you can look at the list of NFIP-affiliated flood insurance providers or seek out a private provider.

NFIP-underwritten policies generally provide two types of coverage:

Building coverage: Building coverage offers financial protection for structural damage to your home for things like the foundation, permanent carpets, appliances, permanent cabinetry and more.
Contents coverage: Contents coverage applies to personal property like art, jewelry, rugs, microwaves, washers, dryers and more.

Building coverage through the NFIP is capped at $250,000, while contents coverage is limited to $100,000. If you need higher coverage limits, a private flood insurance policy may be a better fit. Experts recommend reviewing your flood insurance policy with your provider to ensure your coverage needs are met.

Flood insurance is expensive and can often be more expensive than the cost of your home insurance. If you want to save money on flood insurance, there are a few tips that may help per FEMA and NFIP experts:

Retrofit your home to mitigate flood damage
Raise your flood deductible
Lower your policy limits
Send an annual elevation certificate to your flood insurance provider

Frequently asked questions

Individual states do not mandate that homeowners carry flood insurance, but your lender might if you have a mortgage. If you live in a flood-prone area or if your property faces flood risk due to other variables, it may be wise to consider purchasing flood insurance. New Jersey faces unusually high levels of flood risk compared to other states. Consider speaking with your insurance agent about your area’s flood risk and potential options for securing coverage.
No, homeowners insurance does not typically cover flood damage. Renters insurance policies typically do not either. If you live in a high-risk flood area and want to protect your financial health, experts recommend adding flood coverage. This may be purchased through your current homeowners insurance provider, through an insurer in the NFIP network or through a separate private provider. In some rare cases, flood insurance may be available as an endorsement, but it usually requires a separate policy.
While FEMA does provide disaster assistance for floods that have been declared an emergency, it does not provide assistance for all flooding events. Additionally, FEMA emergency grants are not a replacement for insurance coverage, and the amount you receive could be far less than you would need to repair your home. That’s why most insurance experts recommend that at-risk homeowners secure flood coverage. A flood insurance claim may be paid out regardless of whether the president has deemed the situation an emergency.
There are multiple ways homeowners can get a quote when looking for the best flood insurance in NJ. You can check and see if your current home insurance company offers flood insurance, either through a partnership with the NFIP or its own privately underwritten policies. If your home insurance provider does not offer flood insurance of any kind, you can look at the list of NFIP-affiliated flood insurance providers. Or, if you need higher coverage limits than what the NFIP offers, you can get a quote from a private flood insurance company.

Written by

Natalie Todoroff

Writer, Insurance