Flood Insurance in the Bay Area: What Homeowners Should Know After the Tsunami Advisory

Flood Insurance in the Bay Area: What Homeowners Should Know After the Tsunami Advisory

Following the recent tsunami advisory along the California coast, many Bay Area homeowners are asking the same question: Would my insurance cover flood damage if something like this actually hit?

In most cases, the answer is no. Standard homeowners’ insurance does not cover flood damage. And with rising sea levels and more extreme weather patterns affecting the region, flood risk is something more people should be thinking about.

Flooding Isn't Covered by Standard Homeowners Insurance

From Pacifica to Palo Alto, San Jose to Sausalito, Bay Area homes are not immune to the risk of flooding. Yet most standard homeowners’ insurance policies do not include flood coverage. That includes coastal surges, overflowing creeks, and even heavy rains that overwhelm storm drains.

To be protected, you will need a separate flood insurance policy, either through the National Flood Insurance Program (NFIP) or a private insurance policy.

You Don’t Need to Live on the Coast to Be at Risk

While waterfront properties in places like Alameda, Foster City, and Mill Valley face obvious flood exposure, inland areas are not off the hook. According to FEMA, 32 percent of flood claims come from homes outside high-risk zones.

Bay Area homes that could benefit from flood insurance include:

• Properties near creeks or canals (think Los Gatos Creek, Guadalupe River, San Francisquito Creek)
• Homes in flat or low-lying neighborhoods like East Palo Alto or parts of North San Jose
• Older homes with street-level or below-grade foundations
• Any property in areas where development may have changed how water flows

How Much Does Flood Insurance Cost Around Here?

In the Bay Area, annual premiums through NFIP can range from $600 to over $1,000, depending on your location and elevation. Properties in moderate- or low-risk areas may pay less, and private insurers sometimes offer custom policies that can better suit higher-value homes.

What Does It Cover?

A flood insurance policy can protect:

• Your home's foundation, walls, and essential systems
• Major appliances, water heaters, and HVAC units
• Cleanup and debris removal
• Your personal belongings, depending on your coverage level

Some limitations apply, especially when it comes to basements and detached structures like garages or studios.

What Should You Do Now?

If you're unsure whether flood insurance makes sense for your property, consider these next steps:

• Review of your current homeowner’s policy
• Look up your flood zone using FEMA’s online map
• Talk with an insurance professional about what coverage could cost for your address

Need a recommendation? We are happy to connect you with trusted local insurance agents or help you learn about how flood risk could affect your long-term property value.

Final Thoughts
From winter storm runoff to the unexpected threat of a tsunami, Bay Area homeowners face real exposure to flood damage. The good news is that flood insurance is easier to get than many people realize, and understanding your options now can help you stay prepared. Contact us today for any question you may have regarding real estate!