MINNEAPOLIS — Right now, thousands of homeowners across Minnesota are watching the water outside their homes, hoping it stays outside and wondering if they're protected.
Roberta Gibbons is an insurance agent with Dyste Williams.
She says the average Minnesotan has less flood protection than they might realize.
"Unfortunately basic homeowners policies do not cover flooding,” Gibbons says.
For some types of flooding and water damage, homeowners can buy an add-on to their policy that will offer some protection.
"If you have a sewer water backup endorsement on your policy, which a lot of people do these days, you will have coverage if your sump pump happens to fail and water backs up through sewers and drains into your home."
Gibbons says that extra protection will cost anywhere between $50 and $150 dollars a year, on average.
But if homeowners want protection from major flooding they need a completely separate policy through the National Flood Insurance Program (NFIP)
"With the National Flood Insurance Program they will cover you up to $250,000 on the structure itself and up to $100,000 for your personal property coverage,” Gibbons explains.
The Minnesota Department of Commerce says very few Minnesotans are enrolled in the NFIP.
According to department records from 2021, less than 11,000 of the two million homes in Minnesota were protected by the NFIP.
That number means around 0.5% of Minnesota homes are protected from flooding.
The department says the average NFIP policy costs around $400, but policies for homes that are located in high-risk areas can easily cost thousands of dollars a year.
"It's going to depend on where you live. If you live in a flood zone, if you're right near a river, especially a river that has a history of going over its banks, it will be a little more expensive,” Dan Bryden with the Minnesota Department of Commerce explains.
Cost is the biggest issue, as homeowners weigh the risk and reward of buying protection for a tragedy that may never happen.
"Many people are lucky enough to not have a flooding exposure, but for those that do and have the coverage, they are glad they took out the policy,” Gibbons says.
The Minnesota Department of Commerce is seeing a recent trend of more flood claims being filed by homeowners who live outside high-risk areas.
The department says around 20-25% of claims are now being filed by homeowners in low-risk areas.
Bryden says many of those claims are filed due to excessive rain events where rain eventually finds its way into nearby homes.
He is encouraging all homeowners to consider flood insurance, even if they don’t live in a high-risk area.