The Peach State of Georgia is no stranger to floods. They frequently follow thunderstorms and cause widespread damage. The Federal Emergency Management Agency (FEMA) says that even just 1 inch of floodwater can lead to $25,000 in damage. 

In Georgia, homeowners can expect to pay about $142,000 or more in flood damages over the course of a new 30-year mortgage, according to a study by the Natural Resources Defense Council (NRDC), an environmental advocacy organization. This puts the Empire State of the South in third place nationwide—right behind Connecticut and Alabama—when it comes to high flood-related costs. 

Another important finding of the study is this: Previously flooded homes are likely to experience more flooding in the future. Considering how costly flood damage can be, it’s important to take proactive actions to lessen its financial impact. One of the best ways to do that is to have the right flood insurance because most homeowners insurance don’t cover it.

What Requirements Must You Meet to Get Flood Insurance in Georgia?

Georgia has no state law mandating flood insurance for all homeowners and business owners. So, depending on where you live in the state, you might not need to apply for flood insurance. 

However, if your property meets all three of these conditions, you are required to purchase flood insurance.

1. Your house is located in a Special Flood Hazard Area.

You need to get flood insurance if your property is located in a Special Flood Hazard Area (SFHA) or the Floodplain. This is considered a high-risk area with a 1% annual chance to flood.

SFHAs are marked on the FEMA’s Flood Insurance Rate Maps (FIRMs) or simply, flood maps, with the letters “A” or “V.” These zones come with at least a 1 in 4 chance of flood during a 30-year mortgage. 

Meanwhile, moderate to low-risk areas are marked with the letters “B”, “C”, or “X”. While flood insurance isn’t required in these areas, it’s still strongly recommended for all property owners, most especially because more than 20% of flood claims come from the outside high-risk areas. 

2. Your community participates in the National Flood Insurance Program. 

If your property is situated in a National Flood Insurance Program (NFIP) participating community, then you’re required to get flood insurance. 

The NFIP is the most common type of flood insurance in the state. The program is run by the FEMA and offers standardized policies for property owners, renters, and businesses. 

3. You are required to have one by your mortgage lender. 

If your house is under mortgage, most lenders may require you to get flood insurance if your property is in a high-risk flood zone. You are also required to have one if you have a mortgage from a federally regulated or insured lender. 

Why Does Flood Insurance Matter?

Once you are aware of the potential flood risk, having the right coverage is essential to safeguard your home or business. As the name suggests, flood insurance is designed to help cover the damages directly caused by flooding. 

Damages caused by this natural risk are typically not included in most homeowners’ insurance policies. Thus, if your home floods and you don’t have flood insurance, you could face costly repairs that you have to pay for on your own.

Having flood insurance can help you avoid unexpected out-of-pocket expenses. Policies typically include two types of coverage: one for the building itself and another for what’s inside. The coverage in these arrangements depends on several factors, such as the location of your home, the property’s age, and the manner it was built.

What Happens If You Don’t Have Flood Insurance?

Georgia has a total of 159 counties, but only 584 communities participate voluntarily in the NFIP, according to Georgia’s Environmental Protection Division. This means 89% of the state’s mapped Special Flood Hazard Areas (SFHA) are covered. 

Seventy-one communities mapped with SFHAs don’t participate in the NFIP. For these communities, the consequences can be dire: 

• People in the community, despite their desire, won’t be able to acquire flood insurance policies;
• There will be no federal grants or loans that can be used to build or buy properties in areas marked as flood hazard areas;
• There will be no federal disaster assistance for building repairs; and
• There will be no federal mortgage insurance or loan guarantees to be provided

How to Get Flood Insurance

It is incredibly difficult to recover from a devastating calamity such as a flood. That is why, if you have decided that flood insurance is the right move to protect your most valuable assets—whether it’s your home or your business—the next action is to know how and where to get it. 

With many communities in Georgia with mapped SFHA taking part in the NFIP, this program is the most common way to find an insurance provider.  The NFIP partners with these participating communities to help reduce the financial impact of floods. Aside from the SFHAs, the NFIP also provides both building and contents coverage for moderate to low-risk areas through its Preferred Risk Policy. 

The NFIP flood insurance coverage limits vary based on property type:

Property Type	Maximum Building Coverage	Maximum Content Coverage
Residential properties for a family of 1-4	$250,000	$100,000
Residential properties for a family of 5 or more	$500,000	$100,000
Commercial properties	$500,000	$500,000

Source: Federal Emergency Management Agency (FEMA)

Aside from homeowners and business owners, renters can also apply for flood insurance to cover the contents of their rented homes or properties. It is important to note that there’s a 30-day waiting period before coverage starts, so don’t wait for a flood warning to apply. You can purchase flood insurance through your insurance company or agent.

Cost of Flood Insurance

Like flood insurance coverage limits, premiums vary and aren’t one-size-fits-all. The NFIP uses a property-specific approach to determine the cost of coverage. Such an approach considers several factors to determine a property’s risk, such as the following:

• How likely is your property to experience different types of flooding (flash floods, coastal erosion, or high water levels from storms)?
• What are the features of your home (like foundation type or first-floor elevation)?
• How far is your property from rivers, lakes, or coasts, and its elevation from those flood sources?
• How much would it cost to rebuild your home after a flood?
• Does your home have flood-resistant features, such as flood vents, which help reduce potential damage?
• Are there levees nearby, and how well can they protect your area during a flood?

Why Flood Insurance Is Worth It

Contrary to what most people think, flood insurance is not just an added expense. It is a smart and proactive investment, especially for your peace of mind. 

When you weigh the potential cost of flood damage against the price of a premium, the benefits become clear. A few inches of water can cost tens of thousands of dollars. Paying a manageable amount each year or monthly installments helps you avoid the overwhelming financial burden of repairing or rebuilding your property after a destructive flood. 

By transferring the risk to an insurance provider, you are protecting not only your home or business but also your financial stability. In a state like Georgia, where flooding can happen almost anywhere, having flood insurance means you are prepared no matter what comes your way. It helps ensure that you are not left vulnerable when a flood happens.

While you can’t always predict a flood and the damage it can do, don’t wait for it to happen before taking action. Flood insurance is more than a policy. It is your safety net when the waters rise.