New Jersey flood insurance

Being protected with flood insurance in New Jersey is essential to safeguard your home from potential water damage.

If you are interested in learning more or need legal assistance, our NJ real estate attorney is here to help. With over a decade of experience, you can trust our team to guide you through every step.

Everything you need to know about insurance and flood zones in New Jersey in 2025

Flooding can affect any part of New Jersey, even in moderate- or low-risk areas. In fact, it is estimated that about 20% of flood insurance claims occur in these areas. 

This means that you don’t have to live near a river or the coast to be at risk – just a few centimetres of water can cause serious damage to your home.

Therefore, having flood insurance is the best way to protect yourself against these damages. 

You can check if your home is in a flood zone by using the FEMA Map Service Center.

What is the Community Rating System (CRS) in New Jersey?

The Community Rating System (CRS) is a voluntary program of the National Flood Insurance Program (NFIP) that allows communities in New Jersey to receive discounts on flood insurance premiums. 

Communities that implement measures to reduce flood damage can benefit from this program. 

Currently, 108 communities in New Jersey participate in CRS, allowing them to access these discounts.

What does flood insurance cover in New Jersey?

Flood insurance in New Jersey covers both the building and its contents in the event of flooding. This includes:

Building coverage

• Electrical and plumbing systems.
• HVAC.
• Refrigerators, cooking stoves, and built-in appliances.
• Installed carpeting.
• Cabinets, paneling, and installed bookcases.
• Window blinds.
• Foundation walls, anchoring systems and stairs.
• Detached garages.
• Fuel tanks, well water pumps and solar energy equipment.

Contents coverage

• Clothing, furniture and electronics.
• Curtains and carpets that are not covered by the building insurance.
• Washer, dryer and portable or window air conditioners.
• Microwaves oven, artwork and furs.

It is important to note that these coverages can be purchased separately, depending on whether you are a homeowner or a tenant.

Whether you are a landlord or a tenant, it is always advisable to have experienced NJ landlord and tenant lawyers by your side. 

How much does flood insurance cost in New Jersey?

The average cost of flood insurance in New Jersey ranges from approximately $800 to $939 per year. 

This makes it about $181 more expensive than the national average due to the high risk of flooding in the state. However, rates can vary significantly by county. 

For example, the average flood insurance policy in Passaic County can be as high as $2,049 per year. That’s because homeowners in areas with a higher risk of flooding may face higher rates.

What makes the cost of property insurance in New Jersey change?

The cost of property insurance in New Jersey varies primarily based on the level of risk associated with your home and the amount of coverage you need. Key factors that influence the change in premiums include:

• Age and design of the house.
• Deductible amount.
• Selected coverage options.
• Flood risk.
• Location.
• Amount of building/contents coverage.
• Value of the home.

FEMA uses its Risk Rating System 2.0 to evaluate these factors and calculate flood insurance premiums, which in turn impacts the overall cost of property insurance in New Jersey.

How can I get a quote for flood insurance in New Jersey?

To get a flood insurance quote in New Jersey, you can start by checking with your current home insurer. This will be to see if they offer flood coverage, either through NFIP or through private policies. 

If your provider does not offer this option, you can review the list of insurers affiliated with the NFIP. 

Is flood insurance required in New Jersey?

Flood insurance is not required by law in New Jersey or any other state. 

However, mortgage lenders may require it if the property is located in a flood risk zone where there is at least a 1% annual chance of flooding. 

When to get Flood Insurance in New Jersey?

It is advisable to purchase flood insurance in New Jersey as soon as possible, preferably when purchasing the property. 

Insurers often stop offering new insurance before major storms hit, preventing homeowners from purchasing policies in the days leading up to a severe weather event. 

Additionally, most flood insurance policies have a waiting period before coverage kicks in. For example, NFIP policies require a 30-day waiting period.

Why Consider Flood Insurance in New Jersey?

New Jersey is highly vulnerable to natural disasters that cause flooding. Among these risks, the following facts stand out:

• Hurricane Sandy in 2012 caused $18.75 billion in insured losses in the US, with $6.3 billion in New Jersey alone.
• Approximately 73,000 flood insurance claims were filed in the state following Hurricane Sandy.
• In 2015, more than 233,000 flood insurance policies were issued in New Jersey.
• The state’s coastal areas have an insured value of $713.9 billion, representing 34% of insured property exposure.
• Flooding can occur at any time of year, caused by snowmelt, severe thunderstorms, hurricanes and tropical storms.
• In recent years, New Jersey has experienced 8 federally declared disasters, including flooding.

These reasons make flood insurance essential to protect your home and property.

How to get flood insurance in New Jersey?

To purchase flood insurance in New Jersey you have 2 options to choose from: 

• Through the NFIP: You can contact your insurance company, which may be affiliated with the NFIP. If not, you can check the list of NFIP-affiliated providers.
• With a private insurer: Some insurers manage their own private flood insurance policies. In that case, you can contact an authorized representative to obtain a quote.

It is worth noting that NFIP policies offer 2 types of coverage:

• Building Coverage: Protects your home from structural damage, such as the foundation and permanent cabinets.
• Contents coverage: This covers your personal belongings, such as jewelry and some household appliances. For example, your microwave or washing machine. 

Additionally, NFIP has coverage limits: $250,000 for the structure and $100,000 for contents. So if you require more coverage, a private policy may be a more suitable option. 

Is New Jersey a flood zone?

As we have seen, New Jersey is prone to various types of flooding. What’s more, the state experiences coastal flooding from:

• Tides, 
• Stormwater, 
• Rivers; and 
• Storm surge. 

Coastal areas are particularly vulnerable, spanning 3,218 square miles and affecting 239 communities along the coast.

Because of this, mortgage lenders typically require flood coverage.

Strategies to reduce risks and costs 

Homeowners can reduce flood risks and potentially lower costs by:

• Community flood management: Collaborating on local efforts, such as maintaining drainage systems, can reduce flood insurance rates in New Jersey.
• Flood protection measures: Implementing barriers, elevating utilities, or improving buildings can reduce flood risk.

Is flood insurance transferable in New Jersey?

Flood insurance in New Jersey may be transferable. In fact, if you are selling a property covered by an NFIP policy, you may be able to transfer that policy to the buyer. 

Also, if you are purchasing a home that already has NFIP flood insurance, the policy may be transferred from the seller to you.

Sellers are advised to consult with their insurance agent or contact NFIP directly for specific guidelines, limitations and requirements related to the transfer.

Tips for Transferring Flood Insurance

Some tips for transferring flood insurance include:

• Review the terms and conditions: It is advisable to do this before initiating the transfer. There you will be able to check if the policy is transferable, the coverage limits, deductibles, exclusions and any limitations.
• Notify relevant parties: Inform all parties involved about the transfer of the policy. For example, your insurance company, the new owner of the property and others.
• Understand potential changes to coverage: Transferring your policy may result in changes or limitations to your coverage.
• Seek professional advice: It is key to consult with insurance professionals when transferring a flood insurance policy.

Frequently Asked Questions About Flood Insurance in New Jersey

Does standard home insurance not cover flood damage in New Jersey?

No, standard homeowners insurance does not cover flood damage in New Jersey. 

Therefore, only flood insurance offers financial protection for your home and personal property against this type of damage. 

What about other storm-related damage?

Wind damage to your home, as well as damage caused by a tree falling on your car, are often covered by homeowners insurance policies. 

These policies are offered by various insurers in the state, which are regulated by the New Jersey Department of Banking and Insurance.

What are the most common reasons why flood insurance claims in NJ remain open?

Claims can remain open for several common reasons. One of them is when lenders, who are co-beneficiaries of insurance claims, are in charge of managing the distribution of funds. 

Additionally, consumers often report to the Department of Banking and Insurance (DOBI) that unsatisfactory settlement offers are a frequent cause of delay. 

Commercial claims also tend to take longer to close due to the increased complexity of the cases. This is often because they require more thorough investigations and are policy-specific.

Why do I need flood insurance in New Jersey if FEMA already offers flood assistance?

Although FEMA offers assistance in cases of flooding declared as an emergency, it does not cover all flooding events. In addition, the assistance it provides is often limited. 

Furthermore, FEMA does not replace insurance coverage and the amount received may be much less than what is needed to repair the home.

How many municipalities does NFIP flood insurance cover in New Jersey?

NFIP covers 552 of New Jersey’s 566 municipalities, including the state’s Sports and Exposition Authority. 

Communities must comply with NFIP regulations by adopting a flood damage prevention permit program. FEMA monitors this compliance through audits known as: 

• Community Assistance Visits (CAV), and 
• Community Assistance Contacts (CAC).

These are done to ensure that development regulations are met in flood zones. Communities can also access resources and models to improve their flood risk management.

New Jersey Real Estate Attorneys to Help You with Flood Insurance 

If you are experiencing difficulties with your flood insurance policy or need to file a claim for related damages, it is critical to complete these procedures properly. 

Attorney Carolina T. Curbelo, with over 10 years of experience in real estate and insurance in New Jersey, will provide you with expert advice. Contact us today to schedule a professional consultation and receive the legal assistance you need.