Delaware flood insurance: What your HOA or building should know

What is flood insurance?

Flood insurance is a separate policy that helps pay for covered damage caused by flooding. In Delaware, flood damage is typically excluded from standard homeowners insurance, so flood coverage usually has to be purchased separately through the National Flood Insurance Program (NFIP) or a private flood insurer.
 

What is the NFIP?

The National Flood Insurance Program is the federal program administered by FEMA that makes flood insurance available in participating communities. It sets the baseline rules for what’s covered, how claims work, and federal coverage limits.

Many HOAs and condo associations in Delaware obtain flood coverage through the NFIP, sometimes paired with private options for broader or higher limits.
 

What is a FEMA flood map?

A FEMA flood map shows a community’s flood risk zones, including areas labeled as Special Flood Hazard Areas (SFHAs). These maps matter because mortgage lenders require flood insurance when a property securing a loan from a federally regulated or insured lender is located in an SFHA.
 

Coverage for condos and HOAs

For condo associations

In many condo buildings, the association purchases a master flood policy to cover the building and common elements. For condos insured through the NFIP, the most common master policy form is the Residential Condominium Building Association Policy (RCBAP). In simple terms, an RCBAP covers the building as a whole, with limits tied to replacement cost and the NFIP’s per-unit cap framework.
 

For HOAs

HOA flood coverage typically depends on what the association owns or must insure under its governing documents. Many HOAs insure association-owned property under a Standard Flood Insurance Policy General Property Form. Often, the HOA insures only shared structures and common areas.
 

For unit owners

An association’s master flood policy generally does not protect the unit owner’s personal belongings (furniture, electronics, clothing, etc.). That’s why many owners in condos and HOAs consider a contents-only flood policy to cover what’s inside their unit. Depending on the community’s governing documents and how the master policy is written, unit owners may also want to ask their broker whether unit-level items like improvements or upgrades need separate coverage.

FirstService Residential Connect™ makes it easier for homeowners and board members to instantly access governing documents, notices, and records through an interactive community website and mobile application.
 

Costs for boards and owners

Flood insurance pricing can vary widely because it’s based on property-specific flood risk and policy choices, like coverage limits and deductibles. That said, here are some rough ranges that can help set baseline expectations:

• Boards: Often range from $350–$1,500 per unit per year, though premiums can swing widely because the policy is tied to the whole building (or association-owned structures). Many associations see annual master-policy premiums from a few thousand dollars to tens of thousands+ per year, and pricing is often discussed in per-unit terms.
   
• Unit owners: Typically range from the mid-hundreds to around $1,300+ per year. The final premium depends on factors like the property’s flood zone, elevation, and the amount of coverage selected.

Because flood responsibilities are often shared between the association and individual owners, many communities benefit from professional management support to help coordinate communication, records, and annual insurance reviews. Learn more about the benefits of hiring a property management company.
 

Tips for obtaining flood insurance in Delaware

Confirm who insures what before you shop

Before requesting quotes, align the insurance plan with your governing documents. Boards should confirm what they’re required to maintain and insure, and owners should confirm what they’re expected to insure personally.
 

Plan ahead for the waiting period

NFIP flood insurance often has a 30-day waiting period before it becomes effective. If you wait until a storm is already in the forecast, coverage may not be in place when you need it.
 

If you’re a condo board, ask whether RCBAP is the right fit

If your building qualifies and the association is responsible for building coverage, an RCBAP is often the starting point for NFIP flood insurance. From there, boards can decide whether they need higher limits through excess flood coverage and how owners should fill gaps with contents coverage.
 

Make flood coverage part of your annual insurance review

Flood insurance decisions tend to get attention only after a major event. A simple annual review of what’s covered, what isn’t, and whether limits still match the building can help you avoid last-minute scrambling.
 

How a property management company can help

A strong property management partner can help a Delaware HOA or condominium board keep insurance reviews on a clear annual schedule, organize building data for brokers, coordinate lender and resident communication, and help boards and owners comply with Delaware property management laws.

FirstService Residential clients can also tap our affiliate, FS Insurance Brokers, which combines insurance expertise with property management insight. Their licensed professionals help communities evaluate coverage, improve risk planning, and advocate through the insurance process, often with an eye toward enhancing coverage while keeping premiums competitive.
 

About FirstService Residential

As North America’s leading property management company, FirstService Residential serves Delaware communities with local expertise backed by national resources. Our teams support board members with meetings, recordkeeping, financial management, banking and insurance programs, resident communication, and 24/7 customer care teams. This way, board members can focus on long-term goals instead of day-to-day administration.

With over 25 years of experience across the state, we help HOAs, condo associations, high-rises, and master-planned communities operate smoothly and meet their goals with confidence. To learn how we can support your association, contact our Delaware team today.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.