Insurance Won’t Save You: Navigating Chicagoland’s Flooding and Claims Headaches

If you live in Chicagoland or the surrounding suburbs, you already know that heavy rain and sudden storms are becoming more and more common. This year, many homeowners have faced devastating basement flooding, sewer backups, and property damage that could cost tens of thousands to repair.

Naturally, the first thought many people have is: “Will my insurance cover this?”

Unfortunately, the answer is rarely as simple—or as reassuring—as you might hope.

Does Homeowners Insurance Cover Flooding?

Most homeowners are shocked to learn that standard homeowners insurance does not cover flood damage. That means if heavy rainfall, sewer backups, or water intrusion cause damage, your regular policy likely won’t pay a dime.

The only time your standard policy may step in is if water damage was caused by something sudden and accidental inside the home—like a burst pipe. But if water came from outside—storm runoff, street flooding, or even seepage—your insurance company will likely deny the claim.

So Do You Need Flood Insurance?

Yes—if you want to be fully protected, you need separate flood insurance. Policies are available through the National Flood Insurance Program (NFIP) and some private insurers.

The challenge? Many homeowners don’t realize they need this coverage until after disaster strikes. If you live near rivers, creeks, or low-lying areas in Chicagoland (Elmwood Park, Des Plaines, River Grove, parts of Oak Brook, and other flood-prone suburbs), flood insurance should be seriously considered.

What If You Don’t Have Flood Insurance?

If you don’t carry a flood policy, you’re often on your own financially. Some homeowners try to fight their carriers, but insurance companies are experts at pointing to exclusions. At best, you may qualify for limited assistance if the flooding was caused by a sewer backup—but only if you purchased a special rider on your policy.

Without coverage, you’re paying out of pocket for:

• Water extraction and remediation ($3,000–$10,000+ depending on severity)

• Mold removal ($1,500–$5,000+)

• Replacing flooring, drywall, and electrical systems ($10,000–$50,000+)

Filing a Flood Claim: What You Should Know

If you do have flood insurance, filing a claim can still be frustrating. Insurance companies are not in the business of paying out quickly or generously. Here are a few tips:

1. Document Everything – Take photos and videos before cleaning.

2. Save Receipts – Keep proof of every expense, including temporary housing if needed.

3. Get Professional Estimates – Independent contractors often give more realistic repair costs than insurance adjusters.

4. Stay Persistent – Expect delays, denials, and lowball offers. Push back when needed.

Why This Matters for Homeowners and Sellers

As a Realtor, I’ve seen how flooding impacts property values. A history of water damage—even if repaired—can raise red flags for buyers. That’s why disclosure and proper repair matter. Cutting corners not only hurts you now but can cost you later when you go to sell.

On the flip side, if you handle things proactively—mitigation, documentation, professional restoration—you protect both your equity and your future resale value.

The Bottom Line

Flooding in Chicagoland isn’t going away. Insurance can be confusing and often disappointing, but ignoring the risk isn’t the answer either. Know your coverage, consider flood insurance if you’re in a risk zone, and if damage does occur, document aggressively and fight for every dollar you’re owed.

And when it comes time to sell, having a Realtor who understands how to navigate these situations can make the difference between a deal falling apart—or closing strong.