Not many people in Wisconsin have flood insurance. Here's what to know about how it works.

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As residents across the Milwaukee area assess the scope of damage from the weekend deluge, just 1,186 households have federal flood insurance policies in place.
As emergency crews continue responding to hundreds of calls, it isn't clear yet what the toll of the financial damage will be for this 1,000-year flooding event. But Sarah Smith, director of public affairs for the Wisconsin Office of the Commissioner of Insurance, said even 1 inch of water can cause up to $25,000 in damage.
Over the next 30 years, Wisconsin households in the low- to moderate-flood-risk zones will experience five times more flooding than fire-related events, Smith said, yet the state has one of the lowest numbers of flood insurance policies per capita in the country.
As of July 31, the state Office of the Commissioner of Insurance counted 10,541 federal flood insurance policies across the Wisconsin's more than 2.7 million households. The state did not provide data on how many households use private insurance, but said the majority of residents with flood insurance are using federal.
That's a problem considering Wisconsin building codes don't include any kind of flood plain regulations that would stipulate how to elevate a building, or where not to build based on floodplains, said Sarah Rafajko, the state's National Flood Insurance Program coordinator.
People sometimes mistakenly assume they can't get flood insurance because they don't live in a flood zone or because they rent their home or apartment.
"It's available to anybody, whether they're in the floodplain or not," Rafajko said. "And it can make a really big difference."
What is flood insurance?
Flood insurance covers financial losses of structures and belongings directly caused by flooding.
Consumers have two primary options for flood insurance — the National Flood Insurance Program (NFIP) or private insurance.
NFIP is managed by FEMA and bases rates on where a property is located on the flood zone map.
Homeowners can use an online NFIP tool to search their ZIP code and find out their area's risk. Smith noted that FEMA's maps and risk models derive from historic floodplain data, not future projections that would include the impact of climate change.
Homeowners with a federally backed mortgage are required by their lender to have flood insurance if they're located in a high-risk zone.
Private insurance generate premiums based on a property's unique flood risk rather than on zone regulations.
Why is flood insurance a separate cost from homeowners insurance?
Flood events are too uniquely catastrophic to be included in most homeowners insurance plans.
It wasn't until Congress established NFIP in 1968 to oversee floodplain management regulations that flood insurance became available.
Communities that chose to receive federal insurance were required to adopt minimum standards for flood management.
More: Does home and rent insurance cover flood damage? What to know after Milwaukee floods
Can I get flood insurance if I rent?
Just as homeowners insurance doesn't cover floods, neither does the majority of renters insurance.
Even if a landlord has flood insurance for the building, their insurance won't cover a renter's belongings. Through NFIP, renters can purchase contents-only flood insurance plans that cover up to $100,000 in belongings.
How much does flood insurance cost?
It depends on where you are and whether you chose NFIP or private insurance.
NFIP price ranges from $600 to $1,200 per year, typically.
If you live in a floodplain, however, it can be in the $4,000-per-year range.
If you opt for private insurance, it also varies based on the private assessment done on your property.
Unlike NFIP, private companies can opt to drop someone from their plan for any reason, and can also refuse to take residents on if they live in a floodplain, Rafajka said.
Residents who don't know whether to go the route of NFIP or private can reach out to local insurance agents in Wisconsin. Most sell both kinds of insurance and can quote both, Rafajka said.
Otherwise, homeowners and renters can get a quote directly from floodsmart.gov to find out what their flood insurance options are.
What does it typically cover?
Under NFIP, the maximum building coverage provided is $250,000 and the maximum belonging coverage is $100,000, Rafajka said.
These residents are also granted $30,000 in compliance coverage, which enables residents to rebuild in ways that comply with flood codes.
A big upside of private insurance, Rafajka said, is it can provide replacement costs. That's going to be more beneficial for people who own properties worth considerably more than the maximum building cap of $250,000 provided by NFIP.
Why would Wisconsin residents need flood insurance?
There's a saying among those who work in natural resources: "Wherever it rains, it can flood."
That's part of why Rafajka emphasized the importance of investing in flood insurance. Rafajka recommends recording yourself doing a walk-through of your apartment or home as video evidence of your belongings. Visuals like this will come in handy later — to which Rafajka, who lives in a floodplain, can attest.
It's a saying that tracks for Smith, from the state Office of the Commissioner of Insurance, who said 40% of all flood claims in Wisconsin occurred in low- to moderate-risk areas.
Flood insurance has a standard 30-day waiting period, Smith said, an important consideration for homeowners and renters to think about ahead of flood season, which begins in the months of March and April in Wisconsin.
The Office of the Commissioner of Insurance has more information about flood insurance on its OCI.WI.gov webpage and in a FAQ Sheet.
Natalie Eilbert covers mental health issues for the Milwaukee Journal Sentinel. She welcomes story tips and feedback. You can reach her at [e-mail] or view her X (Twitter) profile at @natalie_eilbert.
This article originally appeared on Milwaukee Journal Sentinel: Flood insurance rare in Wisconsin. What to know about how it works.