Flood Insurance in New Hampshire
What New Hampshire Property Owners Should Know About Flood Insurance
Flooding may not be top of mind for New Hampshire residents, especially with most homes and businesses situated away from the coastline. However, the reality is that flooding can and does occur throughout the state, not just along the coast.
From heavy rainfall and spring snowmelt to overflowing rivers, lakes, and ponds, the risk of flood is real. Flash floods, in particular, can strike unexpectedly and cause substantial damage to homes, buildings, and personal property.
Does Home or Business Insurance Cover Flood Damage?
It's a common misconception: many property owners believe their standard insurance policy will protect them in the event of flooding.. The truth? Even a single inch of water in your home or business can lead to thousands of dollars in damage—and your typical policy won’t cover it.
To be clear:
1. A homeowner's insurance policy does NOT cover flood damage.
2. A commercial property policy does NOT cover flood damage.
Why Everyone in NH Should Consider Flood Insurance
Even if your property seems low risk, the data from the FEMA (Federal Emergency Management Agency) says otherwise.
- 99% of counties in the US have experienced a flood event in the last 20 years.
- 40% of FEMA National Flood Insurance claims were from properties outside the "high-risk" flood zones
Flood damage isn't just inconvenient, it is costly with possible:
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Contaminated water in your home or business
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Damage to foundations, basements, and interiors
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Loss of valuable belongings and structural repairs
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Emotional stress from displacement and cleanup
Flood insurance isn't just a wise choice; it's essential. For many, it's the missing piece of a comprehensive protection plan.
How Does FEMA Flood Insurance Work- What NH Property Owners Should Know?
Flood insurance coverage under the National Flood Insurance Program (NFIP) is administered by FEMA (Federal Emergency Management Agency). FEMA sets the guidelines, rates, and eligibility requirements, while approved insurance companies issue and service the policies.
Available Coverage:
🏠 FEMA NFIP Personal Flood Insurance Coverage Limits-
| Coverage Type | Maximum Limit | Details |
|---|---|---|
| Building Coverage | $250,000 | Covers structural damage to the home, including foundation, walls, HVAC, etc. |
| Contents Coverage | $100,000 | Covers personal belongings like furniture, electronics, clothing, etc. |
| Detached Structures | Included in $250,000 | Limited coverage if used for parking or storage; not covered if used for business or living space |
| Increased Cost of Compliance (ICC) | $30,000 | Helps pay for mitigation measures like elevation or relocation if the home is substantially damaged |
| Valuable Items (e.g., jewelry, art) | $2,500 | Sub-limit within contents coverage; higher-value items may need private insurance |
| Debris Removal | Included | Covered as part of the total claim payout, not a separate category |
⚠️ Important Notes
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Contents Coverage is based on Actual Cash Value (ACV), meaning depreciation is factored in.
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Building Coverage may be Replacement Cost Value (RCV) if the home is the primary residence and coverage is at least 80% of replacement cost.
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Basement exclusions: Finished basements and items stored below ground level are typically not covered.
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No coverage for additional living expenses, vehicles, landscaping, pools, or hot tubs.
🏢 FEMA NFIP Commercial Flood Insurance Coverage Limits
| Coverage Type | Maximum Limit | Details |
|---|---|---|
| Building Property | $500,000 | Covers the structure, foundation, electrical/plumbing systems, HVAC, built-in fixtures, etc. |
| Contents (Personal Property) | $500,000 | Covers business contents like inventory, machinery, furniture, and equipment |
| Increased Cost of Compliance (ICC) | $30,000 | Helps pay for elevation, relocation, or floodproofing if the building is substantially damaged |
⚠️ Important Notes
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Coverage is based on Actual Cash Value (ACV), not replacement cost.
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Separate policies are needed for multiple buildings.
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Deductibles apply separately to building and contents coverage.
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Business interruption losses are not covered under NFIP policies.
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Coverage applies only to direct physical loss from flooding as defined by FEMA.
Given that the coverage available from FEMA may not be adequate for your needs, you can consider either the private market or adding an excess flood policy to your FEMA-issued policy.
Understanding Flood Zones and Premiums
Properties are assigned to flood insurance rate zones based on FEMA mapping. Zones fall into two main categories:
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Special flood hazard areas (SFHAs)
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Non-hazard areas
The closer a property sits to a river, lake, or coastline, the more likely it’ll be mapped as an SFHA—and the higher the insurance premiums. Luckily, most of NH is a non-hazard area.
FEMA’s flood zone designation relies entirely on your property’s location and elevation, not on whether you’ve ever experienced flooding yourself.
If you believe your home has been mapped incorrectly, you can dispute the classification by obtaining an elevation certificate.
Insurance Requirements and Recommendations
When a property is located within an SFHA, a lender requires flood insurance that equals or exceeds the loan amount. Because of this fact, new home buyers should determine their flood zone and whether flood insurance will be required to close.
The tricky part is when an area is remapped, and a property that was not previously considered high-risk to floods suddenly becomes so. FEMA regularly remaps flood zones, so it's challenging to determine if and when it could happen in your area.
The bottom line is that if you are in an SFHA, your lender will likely not look the other way, given that they would be subject to severe fines and penalties by the Federal Deposit Insurance Corporation (FDIC) if flood coverage were not in place.
Regardless of whether you have a loan or not, flood insurance is strongly recommended for all property owners.
How HPM Insurance Can Help
At HPM Insurance, our risk management specialists will:
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Confirm your property’s flood zone classification
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Assess your building’s structure and foundation type
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Outline coverage options, deductible levels, and premium quotes
We guide New Hampshire homeowners through the flood insurance process step by step.
Do I Have to Buy Flood Insurance Issued by FEMA?
That will depend on whether you have a mortgage on the property and if the lender will allow a non-FEMA-backed policy. It is worth asking, as there are benefits to some of the new flood insurance products coming to market (like higher building limits available), but buyer beware, as there are also some drawbacks. Be sure to consult with an insurance professional to gain a clear understanding of both options.
That said, over the last few years, private flood insurance has gained traction in the marketplace due to advancements in mapping technology.
One of the bigger risks faced by property owners who purchase private flood insurance is the option for the company to non-renew your policy if it determines the property is too risky to insure. Policies issued by FEMA can only be canceled for specific reasons, including that you don't pay the premium or if you sell the property.
Why You Should Consider NH Flood Insurance Now
If you decide to buy flood insurance, FEMA has a 30-day waiting period before the coverage can go into effect. You need to plan so you are not caught without flood insurance when a flood threatens your home or business. (The private market may have a shorter wait time, such as 15 days, but both markets allow for shorter wait times if you are purchasing a new property.)
If you think that you do not need to buy insurance because there will be federal disaster assistance available in case you need it, think again. Federal disaster assistance is only available if the President declares a disaster. Flood insurance can pay even if a disaster is not declared.
Why HPM Insurance
HPM Insurance has convenient locations throughout New Hampshire, including Amherst, Bedford, Bristol, Goffstown, Laconia, and Littleton. Take the time to speak with a professional and learn how flood insurance works.
At HPM Insurance, we have been insuring the residents and businesses of New Hampshire and beyond against unpredictable flooding since 1860.
