Few Chicago residents buy flood insurance, but should they?

Less than 1% of Cook County residents have flood insurance.Intense storms, fueled in part by climate change, are expected to get worse in the coming decades. Heavy recent rainfall raises the question whether Chicago homeowners are covered by their existing insurance policy in the event their basement floods.The answer is probably not.“Most people do not know what is and is not covered,” says Douglas Heller, director of insurance at Consumer Federation of America.Here’s what you need to know to figure out if you’re covered — and what to consider if you’re not.

Is flooding getting worse?Big thunderstorms are becoming more frequent and dropping more rain in a short period of time. The streets and local sewers across Chicago and the Cook County suburbs are not designed to handle so much rain, and that’s sending water into streets and homes.Basement flooding is chronic and widespread, especially in low-income communities of color, where streets and outdated sewer infrastructure have seen few improvements and green space is lacking.Severe storms causing flooding, hail and tornadoes resulted in losses of $50 billion across the U.S. in each of the past three years, according to the industry research group Insurance Information Institute.How do I know if I need flood insurance?Almost every community in the Chicago area is at risk of flooding. Neighborhood sewers are designed to hold 2 inches of rain in a 24-hour period. Some storms are dumping four times that amount. The same goes for suburban Cook County.The rain is landing so hard and so fast that it overwhelms the sewers and doesn’t allow the water to run through a massive flood-mitigation system known as Deep Tunnel.Many homeowners are finding out that they don’t have the right insurance to cover losses from water in their homes.How do I figure out if my existing homeowner’s insurance covers basement flooding? Major insurers, such as State Farm and Allstate, will not automatically cover sewer-backup basement flooding as part of a regular homeowner’s plan.Since 1968, the federal government has been the primary insurer for flooding across the country.Allstate says it bluntly on its website: “No type of flood damage, no matter the source of the water, is covered by standard homeowners policies.”

Larry Quinn Jr. thought his homeowners insurance would cover damage from flooding. It didn’t.Giacomo Cain/Sun-Times

Larry Quinn Jr., who lives in Austin, thought his State Farm homeowners insurance would cover flooding. In 2023, more than five feet of water flooded his basement through the sewer drains.“The water was shooting up through the sewers. I mean literally shooting up,” Quinn says.Water ruined two furnaces, several appliances, large power tools, an electric circuit board and so far has cost Quinn about $70,000 in total damages. His insurance didn’t cover the costs to repair or replace anything, he says.State Farm says it encourages people to review their policies with their agents.Here’s what to look for in your policy: Your homeowner’s insurance will list a number of “exclusions,” including damage from water. You need to ask your agent about additional coverage, often referred to as an “endorsement” that will cover basement sewer backup that damages personal items as well as structural things, such as a furnace.It’s important to run through multiple scenarios with an insurer or agent to make sure you’re buying the right kind of coverage.For example: Ask “am I covered in the case of sewer water backing up into my basement?”If my insurer won’t issue flood insurance to me or doesn’t offer it, what options do I have? Add-on insurance from private companies can be at least several hundred dollars but risk will be a big determinant whether you can even buy the coverage. Make sure you understand what a policy pays for either structural damage or for personal property.The government offers flood insurance plans for people in flood-prone areas through the National Flood Insurance Program. But the federal government plan, available to everyone in Chicago and much of Cook County, can have limited coverage of basement damage. It won’t cover personal items stored in a basement or any remodeling done to a finished area.Federal flood insurance can cost at least $700 a year. Estimated quotes can be calculated at https://www.floodsmart.gov. Property can be insured for up to $250,000 in damages.

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The Watchdogs

Flooding in Chicago is getting worse. Here's why.

Blamed in part on climate change, the threat of water ponding in your yard or your basement is growing, a Sun-Times/WBEZ investigation has found, putting health, homes at risk.

Blamed in part on climate change, the threat of water ponding in your yard or your basement is growing, a Sun-Times/WBEZ investigation has found, putting health, homes at risk.

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By Brett Chase

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The Watchdogs

After a flood, mold sticks around and can make people sick

Some 70,000 homes flooded in 2023, leaving mold in many West Side homes, including in Dorothy Rosenthal’s basement. The Chicago health department offers no help to flood victims like her.

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By Brett Chase

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Consumer Affairs

What can homeowners do to reduce flooding?

The risk of flooding in Chicago is growing. Here are a few easy and inexpensive ways to reduce flooding around your home and neighborhood.

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By Brett Chase

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This article was produced as a project for USC Annenberg’s Center for Health Journalism and Center for Climate Journalism and Communication 2025 Health and Climate Change Reporting Fellowship.