Flood insurance
Definition
Flood insurance is a policy that covers certain flood damage to a property. Mortgage lenders commonly require it when the home is in a mapped special flood hazard area. It is not the same policy as homeowners insurance.
In plain English
A standard homeowners policy usually does not cover flood. Flood insurance is a separate policy. Lenders often require it when official maps place the property in a flood zone. This page does not decide whether a particular house needs the policy. Mapping and program rules belong to the official flood authorities.
Technical definition
Fannie Mae’s consumer glossary includes a Flood insurance heading. That consumer identity is PRIMARY. Program details sit with the National Flood Insurance Program, not with this definition.
Why it matters
Escrow analyses and closing disclosures can include a flood premium next to homeowners insurance. They are different coverages.
Related terms
Sources reviewed
Glossary of key terms
ObservedSeptember 4, 2026
Important note
Flood insurance is not homeowners insurance and not mortgage insurance.