Glossary

Private flood insurance

Flood coverage issued on an insurer's own form and rates instead of through the federal program, which a lender may accept in place of an NFIP policy.

Also called: private flood policy, non-NFIP flood insurance

Private flood insurance is flood coverage issued by an insurer on its own policy form and at its own rates, rather than under the federal Standard Flood Insurance Policy. The insurer may be admitted in your state or a surplus lines carrier. Unlike a Write Your Own company, it pays claims from its own funds.

Terms vary by policy, so compare line by line. Some private policies offer higher limits than the NFIP's $250,000 building and $100,000 contents for a one-to-four family home, replacement cost on the dwelling, living expense coverage and different waiting periods. Others exclude things the NFIP covers, such as certain basement items or detached structures. Pricing can be lower or higher than National Flood Insurance Program pricing depending on the property.

Lenders are the main hurdle. Since July 1, 2019, federal rules require regulated lenders to accept a private policy that meets the statutory definition of "private flood insurance" on loans requiring flood coverage, and they may accept others at their discretion. Before canceling an NFIP policy, ask the lender in writing whether the private policy qualifies, and confirm it will not leave a gap in coverage. The guide on private flood insurance vs the NFIP compares the two, and excess flood insurance covers coverage layered on top.

Last reviewed October 10, 2026

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Related terms

National Flood Insurance Program (NFIP) The federal program, run by FEMA since 1968, that makes flood insurance available to owners and renters in communities that adopt floodplain management rules. Excess flood insurance Extra flood coverage that sits above a primary flood policy, usually the NFIP maximum, to pay for losses beyond the first policy's limits. Special flood hazard area (SFHA) The land FEMA maps as having at least a 1% chance of flooding in any year, where lenders must require flood insurance on federally backed mortgages. Write Your Own (WYO) insurer A private insurance company that sells and services federal flood policies under its own name while the federal government carries the flood losses. Surplus lines insurer An insurer not licensed in a state that may write risks the standard market declines, with freer rates and forms and usually no guaranty fund backing.

Related guides

Does homeowners insurance cover flooding? No. A standard homeowners policy excludes flood, surface water and storm surge. Flood coverage takes a separate NFIP or private flood policy. Excess flood insurance above NFIP limits Excess flood insurance is a private layer above the NFIP's $250,000 building limit. How it attaches, who needs it, what to ask and where gaps can remain. Do you need flood insurance outside a high-risk zone? Federal law requires flood insurance only in high-risk zones, yet FEMA says nearly a third of NFIP claims come from outside them. How to decide and when to buy. The 30-day flood insurance waiting period A new NFIP flood policy starts 30 days after you apply and pay, with exceptions for loan closings, new map zones and post-wildfire floods. How it is counted. NFIP reauthorization and what a lapse means for you When the NFIP lapses, existing policies and claims continue but new policies and added coverage stop. What happened in 2025–2026 and how to protect yourself. Private flood insurance vs the NFIP How private flood policies differ from the federal NFIP on limits, living expenses, waiting periods, price and lender rules, and when each one tends to fit.

Related insurers

American Integrity Insurance Tampa homeowners insurer founded in 2006 and public on the NYSE since 2025; sold by independent agents in Florida, Georgia and the Carolinas. National General Allstate's independent-agent brand, bought in 2021, selling home, condo, renters and flood coverage through 55,000-plus agents; based in Winston-Salem, N.C. Neptune Flood The largest U.S. private flood insurance provider, an MGA that places primary and excess flood policies with 45 insurers and reinsurers in all 50 states. Orion180 Melbourne, Florida home insurer founded in 2016 that sells admitted and surplus lines home, FLEX and flood policies through independent agents in 14 states. Southern Oak Insurance Privately held Florida-only home insurer founded in 2004 near Jacksonville, sold through independent agents; Demotech A-rated, frequent Citizens takeouts. Tower Hill Insurance Family-controlled Florida homeowners specialist since 1972; Florida policies sit in the policyholder-owned Tower Hill Insurance Exchange, sold through agents.

Related tools

Flood insurance coverage gap calculator See how much of your home and belongings a National Flood Insurance Program policy can cover, what is left over, and when a new policy would start.