If you think Michigan is too far north to worry about flooding, think again. Between Great Lakes water levels, intense summer storms, and aging infrastructure, flooding has become one of the most common—and costly—disasters for Michigan homeowners. Just in 2024, Southeast Michigan experienced multiple severe flooding events that shut down highways, left thousands without power, and sent water rushing into basements across Wayne, Oakland, and Macomb counties.
Here's the catch: your homeowners insurance won't cover a dime of flood damage. Flood insurance is a separate policy, and understanding how it works in Michigan—especially with the Great Lakes in play—could save you tens of thousands of dollars. Let's break down everything you need to know about protecting your home from flooding in the Great Lakes State.
Why Michigan Needs Flood Insurance
Flooding is the leading cause of disaster declarations by Michigan's Governor or the President. While you might picture coastal states when you think of flood risk, Michigan has its own unique challenges. The Great Lakes aren't just scenic—they're massive bodies of water that can cause storm surge, wave action, and rising water levels that threaten coastal properties.
But it's not just lakefront homes at risk. In July and August 2024, severe storms dumped 2 to 3 inches of rain in just an hour across Metro Detroit, flooding streets, highways, and thousands of basements. Warren's north end saw at least 3 inches in one hour. The Southfield Freeway, I-696, and I-94 all shut down due to high water. On one flooded stretch of Hoover Road, 19 vehicles had to be towed. If your home was in the path of that water, your homeowners policy wouldn't have helped you—only flood insurance covers that kind of damage.
Four Michigan counties—Macomb, Oakland, Saginaw, and Wayne—have been identified as having moderate to high flood risk. If you live in Southeast Michigan especially, flood insurance isn't just a nice-to-have. It's essential protection for your most valuable asset.
What Flood Insurance Covers (and What It Doesn't)
Most flood insurance in Michigan comes through the National Flood Insurance Program (NFIP), a federal program that offers two types of coverage: building coverage and contents coverage. You can buy one or both, depending on your needs.
Building coverage protects the structure of your home—the walls, floors, foundation, electrical systems, plumbing, HVAC, and built-in appliances. For single-family homes, the NFIP provides up to $250,000 in building coverage. Contents coverage is separate and covers your personal belongings—furniture, clothing, electronics, and other possessions—up to $100,000. Renters can purchase contents-only coverage to protect their stuff even if they don't own the building.
Now here's where it gets tricky—especially for Michigan homeowners with basements. Flood insurance has limited basement coverage. Finished basements, rec rooms, spare bedrooms down below? Those aren't covered by the NFIP. Your flood policy will cover structural elements, essential equipment like your furnace and water heater, and cleanup costs, but your beautiful finished basement with the sectional sofa and big-screen TV? That's not protected by standard flood insurance.
There's another critical distinction Michigan homeowners need to understand: flood insurance and sewer backup coverage are not the same thing. If heavy rain overwhelms the sewer system and water backs up into your basement through the drains, that's a sewer backup—and you need a separate sewer backup endorsement on your homeowners policy to cover it. Flood insurance only covers sewer backup if the backup was directly caused by flooding. Given how common basement flooding is in Metro Detroit due to overwhelmed infrastructure, a sewer backup endorsement is just as important as flood insurance. Detroit even has a Basement Backup Protection Program offering up to $6,000 per property to help residents in certain neighborhoods.
How Much Does Flood Insurance Cost in Michigan?
The average NFIP flood insurance policy in Michigan costs about $1,029 per year, or roughly $86 per month. That's slightly above the national average of $818 per year. But depending on where you live and your home's flood risk, your actual premium could be much higher or lower than that average.
FEMA recently updated its pricing system with something called Risk Rating 2.0, which assesses your home's flood risk more individually rather than just looking at flood zones. The result? Some Michigan homeowners have seen their premiums increase. Before 2021, the average cost in Michigan was around $811 per year—the increase to over $1,000 represents about a 32% jump. However, the NFIP caps annual increases at 18%, so even if your true risk is higher, your premium can't skyrocket overnight.
Properties in high-risk flood zones—especially those near rivers, creeks, or the Great Lakes shoreline—will pay more. But here's something many people don't realize: even if you're not in a high-risk zone, you can still buy flood insurance, and it's often quite affordable. More than 20% of flood insurance claims come from properties outside high-risk areas. Given Michigan's unpredictable weather and those intense summer storms, it's worth considering even if you're not required to have it by your mortgage lender.
NFIP Participation in Michigan
Here's something that surprises many Michigan residents: 194 of Michigan's 1,573 communities—about 12%—don't participate in the NFIP. If your community doesn't participate, you can't buy federal flood insurance. Period. Private flood insurance options are expanding, but they're not available everywhere, and the NFIP remains the primary option for most homeowners.
The good news is that most high-risk areas do participate. Of those 194 non-participating communities, only seven are in Michigan's four highest-risk counties (Macomb, Oakland, Saginaw, and Wayne). But it's still worth checking—if you're buying a home, confirming NFIP participation should be on your checklist.
FEMA is also in the middle of updating flood maps for Michigan and other Great Lakes states. Many of Michigan's flood maps were outdated—some of the oldest in the country—but over 100 communities have received new maps in recent years, with more on the way. Updated maps mean more accurate flood risk assessments, but they can also mean some properties will be newly designated as high-risk, requiring flood insurance if you have a federally backed mortgage.
Getting Started with Flood Insurance
The most important thing to know about flood insurance is the waiting period. NFIP policies typically don't take effect for 30 days after you purchase them. That means you can't wait until you see storm clouds on the radar to buy coverage—you need to plan ahead. If you're closing on a home and flood insurance is required, make sure to account for that waiting period.
Start by talking to your insurance agent. Many homeowners insurance companies offer NFIP policies, and your agent can help you understand your home's flood risk, get you a quote, and explain what's covered. You can also visit FloodSmart.gov to learn more about the NFIP, check flood maps, and find agents in your area.
If you're in Southeast Michigan—especially Wayne, Oakland, or Macomb counties—don't forget about sewer backup coverage. Add that endorsement to your homeowners policy to protect against the kind of basement flooding that happens when storms overwhelm the drainage system. For Detroit residents, check if you qualify for the city's Basement Backup Protection Program.
Michigan's flood risk isn't going away. Between climate change, aging infrastructure, and the Great Lakes, flooding will continue to be a threat for Michigan homeowners. But with the right insurance coverage, you can protect yourself from devastating financial losses. Don't wait until the next storm—get a flood insurance quote today and make sure your home is protected.
