Virginia flood insurance: what homeowners should know

Do you need flood insurance in Virginia?

Flooding in Virginia may not be as common as in other states like Louisiana and Florida, but flood events do happen. In 2023, a powerful storm system moved along the East Coast, bringing heavy rainfall that combined with snow melt to cause flooding. The storm caused $1.3 billion dollars in damage, and five people lost their lives. And in 2022, Virginia declared a state of emergency due to severe flooding in Buchanan County. As a result of flooding danger, the Department of Conservation and Recreation announced an annual Flood AWeek, held in March, to raise awareness. The Department urges Virginians to know their flood risk, protect their property and get the necessary flood insurance. 

One of the most important reasons to consider flood insurance is that standard home insurance policies don’t usually cover flood damage. If your home is damaged in a flood event, whether it’s accidental or caused by a natural disaster, only a flood insurance policy  is likely to help pay to repair your dwelling and replace your personal belongings. The average NFIP claim payout is $19,000 in Virginia. While that is significantly below the $52,000 national average, it’s a cost that many homeowners would not want — and in some cases unable to — to pay out of pocket.

In addition, many mortgage lenders will require borrowers to purchase flood insurance if their home is in a high-risk flood area. But even if you do not need to show proof of flood insurance to the bank, you may still want to consider purchasing it for peace of mind.

Cost of Virginia flood insurance

Just like home insurance, how much you pay for flood insurance in Virginia depends on several different factors. As of September 2023, the average annual cost of a flood policy through the NFIP for a single-family home is $800. The average cost of an NFIP flood policy in Virginia is $1,035. Areas with a higher risk of flood damage usually pay more for flood insurance coverage. Below you can see the average cost of an NFIP flood insurance policy in 10 different Virginia areas.

While those are simply averages by location, your specific premium also takes other factors into account. You have control over some of them, like the coverage you purchase, but others are out of your hands, like your property’s elevation or proximity to water. Here are the factors that insurers consider when setting your rates:

• Type and amount of coverage: The NFIP offers two types of coverage: building coverage and contents coverage. For residential homes, the maximum building coverage limit is $250,000 and the maximum contents coverage limit is $100,000. Businesses can purchase commercial flood insurance with up to $500,000 in building and contents coverage.
• Flood types and frequency: Under Risk Rating 2.0, NFIP flood insurance premiums are based on the types of floods and frequency of floods in an area. For example, if most flooding is caused by river overflow, you might pay a different rate than a homeowner in an area with a higher risk of coastal erosion or heavy rainfall.
• Proximity to a water source: Homes that are closer to water sources (not just the ocean) typically pay higher rates for flood insurance.
• Geographic location: If your home is in a high-risk flood zone, you may pay more for flood insurance than if you were in a low-risk zone. To learn if areas near you are flood-prone, use the Federal Emergency Management Agency (FEMA) Flood Map Service Center.
• Your home’s value: As with homeowner’s insurance, the more expensive your home will be to repair, the higher the cost of flood insurance could be.
• The elevation of your property: Even if your home is in a high-risk flood zone, if it is significantly elevated, you may see a reduction in premiums.
• Whether your home has a basement: Since basements are below ground level, they may be more likely to flood than other areas. As such, homes with basements might be more costly to insure.

There are a few ways to try to lower your flood insurance costs, per FEMA and NFIP experts. Selecting a higher deductible on your policy, securing proof of elevation for your property, elevating your utilities or filling in your basement are a few tactics you may want to consider.

When to purchase flood insurance

Since floods are impossible to predict far in advance, it is best to purchase flood insurance as soon as possible. Do not wait until flooding is in the forecast to look for a policy, as you may not find coverage if flooding is imminent. NFIP flood insurance policies have a 30-day waiting period before coverage takes effect.

For instance, if you purchase coverage on a Tuesday and a heavy rainstorm floods your home on the following Saturday, you would not be able to use your flood insurance benefits. However, if you buy flood insurance through a private insurer, rather than the NFIP, the waiting period might be different.

How to purchase Virginia flood insurance

Homeowners in Virginia generally have two options to purchase flood insurance. The first is through the NFIP. These government-backed policies are available from 26  insurance providers in Virginia and offer up to $250,000 in building coverage and $100,000 in contents coverage for residential homes. Building coverage and contents coverage must be purchased separately, but it’s recommended to purchase both.

With an NFIP policy, flood insurance claims for your home’s contents are reimbursed on an actual cash value basis, which is less than what it might cost to replace them as depreciation is taken into consideration. Your dwelling is also covered based on its replacement value, which means you can’t get reimbursed for an amount above the policy limit. Also, remember that all NFIP policies have a 30-day waiting period, so your coverage won’t take effect immediately.

The second option is to purchase private flood insurance. Private insurers may offer more policy options than NFIP coverage. You may also be able to find private flood insurance with a waiting period shorter than 30 days, although this is up to each individual insurer.

With any type of flood insurance, the insurance company typically requires the annual premium to be paid for upfront and in full. You may not have the option to pay the premium in monthly installments, like you might with a homeowners insurance premium. Also, keep in mind that flood insurance policies need to be renewed each year.

Frequently asked questions