When Floods Strike Wisconsin: Why Your Homeowner’s Insurance May Leave You High and Dry

Wisconsin homeowners are learning a harsh reality: when floodwaters invade their homes, their standard homeowner’s insurance policy often provides little to no coverage. Most homeowner’s insurance does not cover flood damage, leaving thousands of families to face devastating financial losses on their own. This coverage gap has become increasingly apparent as 20 of 72 counties in Wisconsin have received federal disaster declarations due to flooding since October 2016.

The Critical Coverage Gap

The distinction between flood damage and water damage covered by homeowner’s insurance is crucial for Wisconsin residents to understand. Most standard homeowners insurance policies exclude flood damage, with coverage for flooding usually only available through separate National Flood Insurance Program (NFIP) policies. This means that when surface water enters your home from outside sources—whether from overflowing rivers, storm drainage failures, or heavy rainfall—your standard policy won’t help.

However, homeowner’s insurance may cover certain water-related incidents. Some policies include limited coverage through a Backup of Sewers/Drains or Sump Pump Overflow endorsement, though these endorsements usually come with strict dollar limits—commonly $5,000 or $10,000. This limited coverage often falls far short of actual damage costs, as one inch of water can cause up to $25,000 in damage.

Wisconsin’s Flood Insurance Reality

The statistics are sobering: according to Wisconsin’s Office of the Commissioner of Insurance (OCI), very few Wisconsinites have flood insurance, with roughly 10,000 flood insurance policies through the National Flood Insurance Program in a state with a population of nearly six million. This means less than 0.2% of Wisconsin residents have flood insurance protection.

Many homeowners mistakenly believe they can only purchase flood insurance if they live in designated flood zones. Most people think they can only get flood insurance if they live in a designated flood plain, as defined by FEMA, but that’s not the case. Nearly everyone in Wisconsin would be eligible to get flood insurance voluntarily, and 40% of NFIP claims come from outside of a FEMA-designated flood plain.

Real-World Impact on Wisconsin Families

The August 2025 flooding in southeastern Wisconsin highlighted these coverage gaps dramatically. One West Allis homeowner estimated spending between $80,000 and $100,000 to repair and replace what her family lost in the flood, with her insurance payout and FEMA assistance covering less than half of those costs. Stories like this are becoming increasingly common across the state.

In Wisconsin, flooding is not only caused by rising levels in lakes and streams, it is also caused by broken water mains, blocked drainage systems, rapid snow melt (particularly when the ground is still frozen), periods of heavy rain in a short amount of time and ice jams. This variety of flood causes means that virtually no Wisconsin property is completely safe from flood risk.

Understanding Your Insurance Options

Wisconsin residents have several insurance options to consider:

• Standard Homeowner’s Insurance: Covers sudden and accidental water damage like burst pipes, but excludes flood damage
• Flood Insurance: The National Flood Insurance Program’s (NFIP) Preferred Risk Policy (PRP) offers lower-cost protection for homes and apartments in areas of low to moderate flood risk, with preferred Risk Policy premiums being the lowest premiums available through the NFIP
• Sewer/Drain Backup Coverage: Available as an endorsement to homeowner’s policies, typically with low coverage limits
• Private Flood Insurance: Private flood insurance often offers both structure and content coverage

The Importance of Acting Quickly

Timing is critical when purchasing flood insurance. There is a 30-day waiting period for an NFIP policy to take effect, so signing up today ensures residents have coverage by the time spring showers start to hit Wisconsin. This waiting period means you cannot wait until flood warnings are issued to purchase coverage.

When water damage does occur, immediate action is essential. Professional water damage restoration companies play a crucial role in minimizing damage and preventing secondary issues like mold growth. Companies like Flood Guys pride themselves on rapid response time, typically under 60 minutes for emergency calls, with 24/7 availability ensuring they’re there when you need them most, as prompt action is crucial in minimizing damage.

Working with Professional Restoration Services

When facing water damage, whether covered by insurance or not, working with experienced flood restoration companies near me is essential for proper recovery. At Flood Guys, a trusted restoration company dedicated to helping recover from water, fire, and mold damage, experienced professionals use advanced technology to deliver tailored services, ensuring a seamless and efficient restoration process every step of the way.

Flood Guys is a local, family-owned, and operated Water Restoration company that services a 35 mile radius of the Milwaukee WI Metro Area, offering professional services for all your Residential and Commercial Water Restoration needs. Their comprehensive approach includes flood damage cleanup and restoration services, including water extraction, drying, and sanitization, ensuring a fast, efficient recovery process for your property.

Taking Action to Protect Your Property

Wisconsin homeowners should take proactive steps to protect themselves:

• Review your current homeowner’s insurance policy to understand what water damage is and isn’t covered
• Consider purchasing flood insurance, even if you don’t live in a designated flood zone
• Add sewer backup coverage to your homeowner’s policy if available
• Document your property and belongings with photos and videos
• Identify reputable local restoration companies before you need them

The gap between flood insurance and homeowner’s insurance coverage in Wisconsin is real and significant. It’s really important for people to understand that homeowners insurance policies do not cover flood damage, and the vast majority of people in Wisconsin don’t have a separate flood insurance policy. Flooding is actually one of Wisconsin’s number one weather-related risks, and going without flood insurance is a financial risk to individuals as well.

Don’t wait until the next flood warning to take action. Understanding your coverage options and having a plan in place—including knowing which restoration professionals to call—can make the difference between a manageable inconvenience and a financial disaster. Wisconsin’s unpredictable weather patterns and increasing frequency of extreme weather events make flood preparedness not just advisable, but essential for protecting your home and financial future.