Flood Insurance in Chicagoland: Do You Really Need It, or Is Your Lender Just Paranoid?
When people hear "flood insurance," they usually think of coastal towns, hurricanes, and Florida retirees hoarding sandbags. But guess what? Even in Chicagoland—hundreds of miles from the nearest ocean—some homeowners must carry flood insurance.
Why? Because Mother Nature doesn’t care that you have a finished basement with a home theater and a wine fridge. If she wants to turn your rec room into an indoor pool, she absolutely will.
Why Do You Need Flood Insurance in Chicago?
You might be asking, “Isn’t Chicago known for deep-dish pizza, not deep water?” Yes, but FEMA disagrees. Flood insurance is required for some homeowners in Chicagoland, particularly those in high-risk flood zones. If your home is in one of these areas and you have a federally backed mortgage, your lender will demand you get flood insurance.
And no, you can’t just “pinkie swear” to take care of any water damage yourself. They want cold, hard, insurance-backed proof.
Flood-Prone Areas in Chicagoland
Some parts of Chicagoland flood so often they might as well install gondolas instead of sidewalks. Here are some of the usual suspects:
Des Plaines, Park Ridge, & Niles – Thanks to the Des Plaines River, some residents here consider rain boots a year-round fashion statement.
Oak Lawn, Blue Island & Calumet City – Where even a light drizzle can make you reconsider investing in a canoe.
Riverside, La Grange & Elmhurst – The western suburbs have charming historic homes…and charming historic drainage issues.
Parts of Chicago’s South & West Sides – If your basement has ever randomly turned into a wading pool, you might already be familiar with the city's amazing sewer system.
Why Does Chicago Even Have Flooding Issues?
Chicagoans are used to unpredictable weather (snow in April, 70 degrees in November), but why does flooding happen so often? Here’s the shortlist:
Heavy Rainfall – Climate change is turning Chicago into a rain-soaked mess, and the city’s drainage system can’t keep up.
Flat as a Pancake – If you thought hills were annoying, turns out they help water drain away. Chicago is flatter than your cousin’s first attempt at baking bread.
Aging Sewer System – Parts of Chicago still use combined sewers, meaning heavy rain can turn “flushing the toilet” into a group activity for the entire block.
Too Many Paved Surfaces – Concrete everywhere means water has nowhere to go—except into your basement.
How Much Does Flood Insurance Cost? (Spoiler: It’s Not Cheap)
If you live in a high-risk flood zone, prepare to spend anywhere from $600 to $2,500 per year—which, let’s be honest, is a small price to pay to avoid floating furniture. If you're in a lower-risk area, policies might be more reasonable, around $200–$400 annually (or roughly the cost of one really fancy steak dinner downtown).
Flood insurance can be purchased through FEMA’s National Flood Insurance Program (NFIP) or private insurers, some of whom may even let you bundle flood insurance with car insurance, because apparently, everything is insurable now.
What If You’re Not Required to Have Flood Insurance?
Even if your lender doesn’t force you into getting flood insurance, should you still consider it? YES.
Here’s why:
Your standard homeowner’s insurance policy does NOT cover flood damage (which, honestly, feels like a scam).
One inch of water in your home can cost $25,000 in damage. That’s the price of a new car—or a slightly used car and a month’s worth of Chicago parking tickets.
If your basement has flooded before, the universe is already warning you. Listen.
How to Find Out If Your Home is in a Flood Zone
Still unsure if you're in danger of turning your living room into a lazy river? Here’s how to check:
Go to FEMA’s Flood Map Service and type in your address.
Call your local city or county floodplain management office and hope they pick up.
Ask your insurance agent, who will either give you a clear answer or try to sell you even more insurance.
Final Thoughts: Should You Get Flood Insurance?
If you live in Chicagoland, especially in a flood-prone area, flood insurance is a very good idea—unless you enjoy surprise indoor water features. Even if you’re not required to have it, getting flood insurance could save you thousands if the unthinkable happens.
Thinking about buying or selling a home in Chicagoland? Let’s chat about flood zones, insurance, and other things that might keep your house from becoming a suburban Atlantis. Contact me today! 🚀
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