Do you need flood insurance in a low-risk area?

I just moved to Nashville for work and bought my first house. My mortgage company didn’t require flood insurance since I’m in a low-risk zone, so I skipped it. But now I’m second-guessing that decision after hearing about flooding in the area. Am I worrying too much, or is this worth considering in low-risk areas, too?

Great question, and congrats on the new home. This is something a lot of first-time homeowners wrestle with, especially when flood insurance isn’t required. The short answer: you don’t have to carry flood insurance in a low-risk area, but it’s often still worth considering.

A big reason why is that flood risk doesn’t stop at FEMA zone boundaries. In fact, about 1 in 3 flood insurance claims come from properties outside high-risk flood zones. Those areas are labeled “lower risk,” not “no risk.”

In a place like Nashville, flooding is often driven by heavy rain rather than proximity to water. Sudden storms, drainage issues, and new development can all lead to flooding in neighborhoods that aren’t mapped as high risk. That’s why some homeowners are caught off guard.

Another piece to think about is coverage. Standard homeowners insurance doesn't cover flood damage, so without a separate policy, repairs typically come out of pocket. Even a few inches of water can get expensive quickly.

That said, this really comes down to your comfort level with risk and cost. Flood insurance in lower-risk areas is usually less expensive than in high-risk zones, which makes it easier for some homeowners to add that extra layer of protection.

If you’re on the fence, it can help to look at how flood insurance works and what it would cost for your specific home before deciding. The NFIP (National Flood Insurance Program) typically costs between $400 and $1,500 per year, depending on your home and its risks. There are companies that sell flood insurance exclusively, and many of the big names can also connect you with a flood insurance policy. You can always give your current insurer a call and ask if they offer coverage (or work with a partner who does) and start there.