Do You Need Flood Insurance for Lake Houses and Cabins?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 7
- 3 min read
Owning a lake house or cabin is a dream for many—peaceful mornings, scenic views, and a perfect escape from the city. But with that dream comes a unique set of risks, especially when it comes to flooding. Whether your property is a short-term rental, vacation getaway, or long-term investment, understanding your flood risk is essential.
At Wexford Insurance, we specialize in rental property insurance for lake houses, cabins, and other waterfront properties. In this blog, we’ll explore whether flood insurance is necessary and how to protect your investment.
Why Standard Insurance Isn’t Enough
Most homeowners and landlord insurance policies do not cover flood damage. That means if your lake house or cabin is hit by rising water from a storm, snowmelt, or overflowing lake, you could be left paying out of pocket for repairs.
Flood insurance is a separate policy—typically offered through the National Flood Insurance Program (NFIP) or private insurers—that covers:
Structural damage (foundation, walls, plumbing, electrical)
Personal property (furniture, appliances, electronics)
Cleanup and debris removal
Even just one inch of water can cause over $25,000 in damage, according to FEMA.
When Is Flood Insurance Required?
Flood insurance is required by lenders if your property is located in a Special Flood Hazard Area (SFHA)—a high-risk flood zone designated by FEMA. If you’re financing your lake house or cabin with a mortgage, your lender will likely mandate flood insurance.
However, even if your property is in a moderate or low-risk zone, flood insurance is still worth considering. In fact, 40% of all flood claims come from properties outside high-risk zones.
Factors That Increase Flood Risk
Even if your lake house or cabin isn’t in a FEMA-designated flood zone, several factors can increase your risk:
Proximity to water (lakes, rivers, streams)
Elevation and slope of the land
Local weather patterns (heavy rainfall, snowmelt)
Soil saturation and drainage issues
Outdated flood maps that don’t reflect current risks
Climate change has made flooding more unpredictable, even in areas that historically haven’t flooded.
How Much Does Flood Insurance Cost?
Flood insurance premiums vary based on:
Flood zone classification
Property elevation
Building materials and age
Coverage limits and deductibles
For properties in low-risk areas, NFIP policies can be relatively affordable—often between $400–$600 per year.
Why Choose Wexford Insurance?
At Wexford Insurance, we offer customized rental property insurance for:
Lake houses
Cabins
Vacation homes
Long-term rentals
We help you assess your flood risk, understand your coverage options, and secure the right policy to protect your investment. Whether you need flood insurance, landlord coverage, or loss of rent protection, we’ve got you covered.
Final thoughts:
Protecting your lake house or cabin from flood damage isn’t just smart—it’s essential. Contact Wexford Insurance today to get a personalized quote and ensure your rental property is fully covered.
FAQs
Q: Is flood insurance required for cabins near lakes or rivers?
A: Only if the property is in a high-risk flood zone and financed with a mortgage. Otherwise, it’s optional but recommended.
Q: Does homeowners insurance cover flood damage?
A: No. You need a separate flood insurance policy for water damage caused by flooding.
Q: Can I get flood insurance if I’m not in a flood zone?
A: Yes. Properties in low- or moderate-risk zones are eligible for lower-cost NFIP policies.
