Flood Insurance in Cerritos - Do You Need It?

When most Cerritos homeowners think about insurance, they assume their homeowners policy covers everything. Fire? Covered. Theft? Covered. Storm damage? Covered.

Flood? Not covered.

This surprises many people. Cerritos isn't on the coast. We don't have rivers running through town. How could flooding be a concern?

The reality: Flooding can happen anywhere, and when it does, the damage is catastrophic and expensive. The average flood claim is $30,000-50,000, and without flood insurance, you pay 100% of that out-of-pocket.

Even more surprising: 20-25% of flood claims occur in low-to-moderate risk areas—places where homeowners never expected flooding to happen.

This guide explains exactly what flood insurance is, whether you need it in Cerritos, what it covers, how much it costs, and how to get it if you decide it's right for you.

Why Homeowners Insurance Doesn't Cover Floods

First, let's clarify why your standard homeowners insurance doesn't cover flood damage.

The Technical Answer

Homeowners insurance policies contain a specific "water damage" exclusion that reads something like this:

"We do not cover loss caused directly or indirectly by: ...flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind."

Translation: Any water that comes from outside your home and rises from the ground up is excluded. This includes:

• Overflowing rivers, creeks, or drainage systems

• Heavy rain that causes surface water to pool and enter your home

• Storm surge (coastal areas)

• Snowmelt (not relevant in Cerritos)

• Levee or dam failure

Why the Exclusion Exists

Flood risk is geographically concentrated and catastrophic. When floods occur, they affect entire neighborhoods or regions simultaneously, creating massive claim volumes that would bankrupt insurers if included in standard policies.

To manage this risk, flood insurance is offered separately through:

1. The National Flood Insurance Program (NFIP)

2. Private flood insurance companies

What Homeowners Insurance DOES Cover

To be clear, your homeowners policy covers some types of water damage:

Covered water damage:

• Burst pipes

• Appliance malfunctions (washing machine overflow, water heater burst)

• Roof leaks from wind-driven rain

• Accidental discharge from plumbing or HVAC systems

Not covered (requires flood insurance):

• Rainwater entering through doors/windows due to ground-level flooding

• Water backing up through drains/sewers due to overwhelmed systems

• Surface water pooling and entering your home

• Rising water from any source

The key distinction: Water coming from inside your home or above (roof) = covered. Water coming from the ground up or outside in = not covered.

Flood Risk in Cerritos and Orange County

"But Cerritos isn't near water. Why would I need flood insurance?"

Valid question. Let's look at the actual flood risk in our area.

Cerritos Flood Zones

FEMA (Federal Emergency Management Agency) creates flood maps that classify areas based on flood risk:

Zone X (Moderate to Low Risk): Most of Cerritos falls in this category. This means:

• Less than 1% annual chance of flooding

• Not in a high-risk flood zone

• Flood insurance is optional (not required by lenders)

However: "Low risk" doesn't mean "no risk." Even Zone X properties can flood.

Historical Flooding in the Area

While Cerritos hasn't experienced major flooding recently, the surrounding area has:

1992-1993 Southern California Floods: Heavy El Niño rains caused widespread flooding across Orange County and Los Angeles County. Cerritos Creek and surrounding areas experienced flooding.

2005 January Storms: Intense rainfall caused localized flooding in Orange County communities.

2017 February Storms: Atmospheric rivers dumped record rainfall, causing flooding in multiple Southern California cities.

2023 Winter Storms: Multiple atmospheric rivers led to flooding concerns across Southern California.

Why Flooding Can Still Happen in Cerritos

1. Inadequate drainage systems: Storm drains designed 30-50 years ago may not handle today's intense storms.

2. Urban development: More pavement = less water absorption = more runoff = higher flood risk.

3. Climate change: More extreme weather patterns, including intense rainfall events.

4. Cerritos Creek: While generally contained, heavy sustained rain can overwhelm capacity.

5. Localized flooding: Even in non-flood zones, low-lying areas, poor grading, or blocked drains can cause localized flooding during heavy rain.

The 20% Rule

Here's the statistic that matters most: 20-25% of flood claims come from moderate-to-low risk areas.

Translation: Even though Cerritos is mostly low-risk, one in four flood claims happens in areas just like ours.

What Flood Insurance Covers (and Doesn't Cover)

Understanding exactly what flood insurance covers helps you decide if you need it.

What's Covered - Building Coverage

Flood insurance covers the structure of your home up to the limit you purchase (max $250,000 for residential):

Covered:

• Foundation and walls

• Electrical and plumbing systems

• HVAC, water heater, furnace

• Built-in appliances (dishwasher, stove)

• Permanently installed carpeting

• Central air conditioning

• Built-in bookcases, cabinets

• Detached garage (up to 10% of building coverage)

What's Covered - Contents Coverage

You can purchase separate contents coverage up to $100,000:

Covered:

• Clothing and furniture

• Electronics and appliances

• Portable air conditioners

• Curtains and drapes

• Portable microwaves

• Carpets not included in building coverage

What's NOT Covered

Flood insurance has specific exclusions:

Not covered:

• Damage caused by moisture, mold, or mildew that could have been avoided

• Currency, precious metals, stocks, bonds

• Most personal property kept in basements

• Living expenses (temporary housing during repairs)

• Additional living expenses

• Swimming pools, fences, decks, patios

• Landscaping and septic systems

• Financial losses due to business interruption

• Cars, RVs, motorcycles (covered by auto insurance)

Basement Coverage Limitations

Flood insurance provides very limited coverage for basements:

• Only structural elements and essential equipment are covered

• Personal property, finished walls, floors, and ceilings in basements are NOT covered

• This is a significant limitation if you have a finished basement

NFIP vs. Private Flood Insurance

You have two options for flood insurance: the National Flood Insurance Program (government) or private flood insurance companies.

National Flood Insurance Program (NFIP)

What it is: Government-backed flood insurance program administered by FEMA

Pros:

• Available in most areas

• Standardized coverage and rates

• Backed by federal government

• Accepted by all lenders

• Available regardless of flood history

Cons:

• Coverage limits ($250,000 building, $100,000 contents)

• Doesn't cover additional living expenses

• Can be slow to pay claims after major disasters

• Limited coverage for basements

• 30-day waiting period

Cost: Varies based on flood zone and building characteristics, typically $400-2,000/year in low-risk areas

Private Flood Insurance

What it is: Flood insurance offered by private insurance companies

Pros:

• Higher coverage limits available (sometimes $500,000-1M+)

• May include additional living expenses

• More coverage options

• Can be less expensive than NFIP in some cases

• Potentially faster claims handling

• May have shorter or no waiting period

Cons:

• Not available in all areas

• Not all lenders accept private flood insurance (though most do now)

• Company-specific policy terms (read carefully)

• Varies significantly by insurer

Cost: Varies widely, sometimes less expensive than NFIP, sometimes more

Which Should You Choose?

Consider NFIP if:

• You're in a high-risk area (required for mortgage)

• You want standardized, straightforward coverage

• You need government-backed security

• Your lender requires NFIP specifically

Consider private flood insurance if:

• You need higher coverage limits (home value exceeds $250,000)

• You want additional living expense coverage

• You can find lower rates than NFIP

• You want more flexible coverage options

Best approach: Get quotes from both and compare coverage and price.

How Much Does Flood Insurance Cost?

The cost of flood insurance varies significantly based on several factors:

Factors Affecting Cost

1. Flood zone:

• High-risk zones (A, AE, V): $1,500-3,500/year

• Moderate-risk zones (B, C, X): $400-1,200/year

• Low-risk zones: $400-800/year

2. Building characteristics:

• Elevation relative to base flood elevation

• Foundation type (slab, crawlspace, basement)

• Number of floors

• Building age

3. Coverage amounts:

• Higher limits = higher cost

• Building coverage + contents = more than building alone

4. Deductible:

• Lower deductible = higher premium

• Available deductibles: $1,000-10,000

5. Prior claims:

• Flood claims history can affect rates

Average Costs in Cerritos

Since most of Cerritos is in low-to-moderate risk zones:

Building coverage only ($250,000):

• $400-800/year typical

Building + contents ($250,000 building + $100,000 contents):

• $600-1,200/year typical

Example premiums:

• $600/year = $50/month

• $900/year = $75/month

Compared to the risk: The average flood claim is $30,000-50,000. For $50-75/month, you're protecting against a potentially catastrophic loss.

Rate Changes and Risk Rating 2.0

FEMA recently implemented "Risk Rating 2.0," a new rating methodology that calculates flood risk more precisely. For some properties, rates decreased. For others, they increased. If you had a quote years ago, get a new quote—pricing may have changed.

The 30-Day Waiting Period

One of the most important things to know about flood insurance:

There's typically a 30-day waiting period before coverage takes effect.

What this means:

• You can't buy flood insurance when a storm is approaching and expect immediate coverage

• Coverage usually starts 30 days after purchase

• You must plan ahead

Exceptions to the 30-day waiting period:

• Required by lender at time of home purchase or mortgage refinance (no waiting period)

• Property remapped into high-risk zone (no waiting period)

• Some private insurers offer shorter or no waiting period

Key takeaway: Don't wait until hurricane season or heavy rain is forecasted. Buy flood insurance during the dry season so it's in effect when you need it.

Do You Need Flood Insurance in Cerritos?

Here's how to decide if flood insurance makes sense for you:

You MUST Have Flood Insurance If:

You're in a high-risk flood zone with a federally-backed mortgage.

If your home is in a Special Flood Hazard Area (SFHA) and you have a mortgage from a federally regulated lender, flood insurance is legally required.

Most of Cerritos is NOT in a high-risk zone, so this likely doesn't apply to you. But check your flood zone to be sure.

You SHOULD Strongly Consider Flood Insurance If:

1. Your home is in a low-lying area

Even in low-risk zones, properties at lower elevation than surrounding areas are more vulnerable.

2. You live near Cerritos Creek or storm channels

While designed to contain water, extreme rain can overwhelm capacity.

3. You've experienced water intrusion during heavy rain before

If you've had even minor water seepage during storms, that's a red flag for potential flooding.

4. Your street floods during heavy rain

If street flooding happens during heavy rain, that water can enter your home.

5. You can't afford a $30,000-50,000 unexpected expense

The average flood claim is $30,000-50,000. If that would be financially devastating, you should have flood insurance.

6. You have finished basement or ground-level living spaces

These are most vulnerable to flood damage.

7. Your home value exceeds $250,000

NFIP limits building coverage to $250,000. If your home is worth more, you need private flood insurance to cover the difference or face under-insurance.

You Might Not Need Flood Insurance If:

1. You have substantial emergency savings ($50,000+)

If you could comfortably self-insure a flood loss, flood insurance may not be necessary.

2. Your home is elevated well above surrounding properties

If you're on a hill or significantly higher than nearby areas, your risk is lower.

3. You've done extensive flood mitigation

If you've installed French drains, sump pumps, raised your home, or implemented other flood prevention measures, your risk is reduced.

4. You're willing to take the risk

Flood insurance is optional in low-risk zones. If you understand the risk and decide to self-insure, that's your choice.

However: Remember that 20% of flood claims come from low-risk areas. "Low risk" isn't "no risk."

How to Get Flood Insurance

If you decide you want flood insurance, here's how to get it:

Step 1: Determine Your Flood Zone

Use FEMA's Flood Map Service Center (msc.fema.gov) to enter your address and see your flood zone.

Or call us at (562) 402-1737 and we'll check for you.

Step 2: Decide Between NFIP and Private

Consider both options. We represent insurers offering both NFIP and private flood insurance and can compare options for you.

Step 3: Determine Coverage Amounts

Building coverage:

• Minimum: Enough to cover mortgage balance

• Recommended: Full replacement cost of structure (up to $250,000 NFIP, higher with private)

Contents coverage:

• Estimate the value of all personal property

• Consider what you'd need to replace everything

• Typical range: $50,000-100,000

Step 4: Choose Your Deductible

Higher deductible = lower premium

Available deductibles: $1,000-10,000

Most common: $1,000-2,500 deductible

Step 5: Get Quotes

Contact us at (562) 402-1737 and we'll get you quotes from both NFIP and private insurers.

Step 6: Purchase Policy

Once you've chosen coverage:

• Complete application

• Pay premium

• Wait 30 days for coverage to take effect (or no waiting if required by lender)

Flood Insurance Myths vs. Reality

Let's clear up common misconceptions:

Myth #1: "I don't need flood insurance because I'm not in a flood zone."

Reality: You're either in a high-risk, moderate-risk, or low-risk flood zone. There's no such thing as "not in a flood zone." Even low-risk areas can flood.

Myth #2: "Federal disaster assistance will cover me if there's a flood."

Reality: Federal disaster assistance is only available if the president declares a federal disaster for your area—which doesn't always happen. Even when it does, assistance comes in the form of low-interest loans that must be repaid, not grants. The average federal disaster loan is $30,000 that you must repay with interest.

Flood insurance, by contrast, provides payment that doesn't have to be repaid.

Myth #3: "Flood insurance is too expensive."

Reality: In low-risk areas like most of Cerritos, flood insurance costs $400-1,200/year ($35-100/month). Compared to the average flood claim of $30,000-50,000, it's actually quite affordable.

Myth #4: "My home has never flooded, so I don't need insurance."

Reality: Just because something hasn't happened doesn't mean it won't. Climate patterns are changing, storms are becoming more intense, and what was rare 30 years ago may become more common. Plus, development in surrounding areas changes drainage patterns and can increase your risk.

Myth #5: "I can buy flood insurance when a storm is coming."

Reality: No. The 30-day waiting period prevents this. You must purchase flood insurance before storm season, not during it.

Myth #6: "My homeowners insurance covers some flood damage."

Reality: No. Homeowners insurance excludes ALL flood damage. There's no partial coverage, no grey area. Flood = not covered. Period.

Myth #7: "Renters don't need flood insurance."

Reality: While landlords should insure the building, renters need contents coverage for their belongings. Renter flood insurance for contents is affordable ($200-400/year) and protects your possessions.

What to Do If You Experience Flood Damage

If flooding occurs and you have flood insurance:

Immediate Steps

1. Safety first: Don't enter flooded areas if electrical hazards exist

2. Document damage: Take photos and videos from multiple angles

3. Mitigate further damage: Remove standing water if safe to do so

4. Save damaged items: Don't discard until adjuster has seen them

5. Contact your insurer immediately: File your claim within 60 days

The Claims Process

NFIP claims:

• Call 1-800-621-3362 to file

• An adjuster will be assigned

• Adjuster inspects damage

• You receive payment based on damage assessment

Private insurance claims:

• Contact your insurer directly

• Similar process to NFIP

• May be faster in some cases

Tips for Filing Flood Claims

• File immediately (within 60 days required)

• Document everything extensively

• Get your own contractor estimates

• Keep receipts for all temporary repairs and mitigation

• Don't make permanent repairs before adjuster sees damage

• Be prepared for the process to take several weeks to months

Make an Informed Decision

Flood insurance isn't required for most Cerritos homeowners, but that doesn't mean it's not valuable.

Consider:

• Your financial situation (can you absorb a $30,000-50,000 loss?)

• Your home's characteristics (low-lying area? near water?)

• Your risk tolerance

• The relatively low cost ($50-100/month in most cases)

For $50-75/month, you're protecting yourself against a potentially devastating financial loss.

Is it worth it? Only you can decide. But make sure you're making an informed decision based on facts, not assumptions.

Want to discuss whether flood insurance makes sense for your situation?

Contact Pinoy General Insurance:

• Call: (562) 402-1737

• Email: info@pinoygeneralinsurance.com

• Visit: 17304 Norwalk Blvd, Cerritos, CA 90703

• Web: pinoygeneralinsurance.com

We'll check your flood zone, explain your options, and provide quotes from both NFIP and private insurers—at no cost or obligation.

Make an informed decision about flood insurance. We're here to help.

Frequently Asked Questions

Does homeowners insurance cover any flood damage?

No. Homeowners insurance policies specifically exclude all flood damage. You need separate flood insurance.

What's the difference between flood insurance and water damage coverage?

Water damage coverage (included in homeowners insurance) covers water from inside your home (burst pipes, appliance leaks, roof leaks). Flood insurance covers water that comes from outside and rises from the ground up.

How much does flood insurance cost in Cerritos?

Typically $400-1,200/year for building and contents coverage in low-to-moderate risk zones, which covers most of Cerritos.

Can I buy flood insurance at any time?

Yes, but there's typically a 30-day waiting period before coverage takes effect. Don't wait until storm season.

Is flood insurance required in Cerritos?

Not for most homes. Cerritos is primarily in low-to-moderate risk flood zones, so flood insurance is optional unless specifically required by your lender.

What if I'm renting?

Your landlord's flood insurance (if they have it) only covers the building. You need renter flood insurance to protect your belongings. Cost: typically $200-400/year.

Does flood insurance cover mold?

Only mold that results directly from flood damage. Mold from gradual leaks or lack of maintenance is not covered.

How do I know my flood zone?

Visit FEMA's Flood Map Service Center (msc.fema.gov) or call us at (562) 402-1737 and we'll check for you.

Last Updated: January 2026

This blog post is for informational purposes only. Flood insurance needs vary by property and situation. Contact Pinoy General Insurance Services for personalized flood insurance quotes and advice.