Flood Insurance in Arkansas: Why Northwest Arkansas Homeowners Shouldn’t Rely Only on the FEMA Map

When most Northwest Arkansas homeowners think about flood risk, they check the FEMA flood map. If their property isn’t in a designated flood zone, they assume they’re safe.

That assumption can be financially devastating.

Here’s the reality:

Over 40% of flood insurance claims come from properties outside FEMA-designated high-risk flood zones.

Between Beaver Lake, aging stormwater systems, new developments with poor drainage, and increasingly severe weather patterns, Northwest Arkansas homeowners face flood risks that FEMA maps don’t always capture.

As an independent insurance agency serving homeowners across Northwest Arkansas, OZK Insurance has helped hundreds of families protect themselves from flood damage — even when they thought they didn’t need it.

This comprehensive guide covers:

• Why FEMA flood maps are often outdated or inaccurate
• What flood insurance actually covers (and what it doesn’t)
• Who needs flood insurance in Northwest Arkansas
• Real examples of flood claims in NWA
• How much flood insurance costs
• How to get coverage even if you’re not in a flood zone
• Why independent agencies make flood insurance easier

Let’s dive in.

Part 1: Why FEMA Flood Maps Don’t Tell the Whole Story

FEMA flood maps divide areas into zones based on flood risk. But these maps have serious limitations:

1. Many Maps Are Decades Old

Some FEMA flood maps in Northwest Arkansas haven’t been updated since the 1980s or 1990s.

What’s changed since then:

• Massive residential and commercial development
• Altered drainage patterns
• Increased impervious surfaces (pavement, roofs)
• Climate changes leading to more intense rainfall
• Aging stormwater infrastructure

The result:
Properties that were low-risk 30 years ago may be high-risk today.

2. FEMA Maps Don’t Account for Local Drainage Issues

FEMA maps focus on major waterways and floodplains. They don’t account for:

• Poor lot grading
• Inadequate stormwater systems
• Clogged culverts
• Undersized drainage pipes
• Flash flooding from heavy rainfall

Real NWA example:
A Springdale homeowner purchased a home outside the FEMA flood zone. During a heavy rainstorm, water pooled in the yard due to poor grading and flooded the basement. Damage: $18,000. No flood insurance = no coverage.

3. New Developments Often Have Drainage Problems

Rapid development in Bentonville, Rogers, and surrounding areas has created new flood risks.

Why:

• Developers grade lots to drain water away from new homes, often toward existing homes
• Stormwater systems can’t handle increased runoff
• Natural drainage patterns are disrupted

Real NWA example:
A Rogers homeowner lived in the same house for 15 years with no flooding. Then a new subdivision was built uphill. The next heavy rain, water flooded their garage and basement. Damage: $22,000. No flood insurance = no coverage.

4. Climate Patterns Are Changing

Northwest Arkansas is experiencing:

• More frequent heavy rainfall events
• More intense storms
• Flash flooding that wasn’t common 20 years ago

Data:
According to NOAA, Arkansas has seen a 15% increase in extreme precipitation events since 2000.

Part 2: What Flood Insurance Covers (and What It Doesn’t)

Flood insurance is provided through the National Flood Insurance Program (NFIP) or private insurers.

Here’s what it covers:

What Flood Insurance DOES Cover:

Building Coverage:

• Structure of your home
• Foundation
• Electrical and plumbing systems
• HVAC systems
• Built-in appliances (dishwasher, range)
• Permanently installed carpeting
• Paneling, wallboard, bookcases
• Detached garages (up to 10% of building coverage)

Contents Coverage (optional):

• Furniture
• Electronics
• Clothing
• Portable appliances
• Curtains
• Portable air conditioners
• Portable dishwashers and microwaves

What Flood Insurance DOES NOT Cover:

• Damage caused by moisture, mildew, or mold that could have been avoided
• Temporary housing or living expenses
• Financial losses due to business interruption
• Currency, precious metals, or valuable papers
• Swimming pools, hot tubs, or fences
• Landscaping
• Decks and patios
• Property outside the insured building (except detached garages)
• Basement contents (with limited exceptions)

Important Note About Basements:

NFIP policies have very limited coverage for basements. They cover:

• Structural elements
• Essential equipment (furnace, water heater)

They do not cover:

• Finished basement walls, floors, or ceilings
• Personal property stored in basements

Recommendation:
Don’t store valuables in basements if you’re at any flood risk.

Flood insurance has specific coverage limits and exclusions.OZK Insurance walks you through exactly what’s covered so there are no surprises when you file a claim.

Part 3: Who Needs Flood Insurance in Northwest Arkansas

Here’s who should seriously consider flood insurance:

1. Homeowners Near Beaver Lake or Other Bodies of Water

If your property is near:

• Beaver Lake
• Creeks or streams
• Retention ponds
• Drainage ditches

You’re at elevated risk.

2. Homeowners in Low-Lying Areas

Even if you’re not near water, low-lying properties are at risk for:

• Flash flooding
• Water pooling
• Runoff from higher elevations

3. Homeowners in New Developments

New subdivisions often have:

• Immature drainage systems
• Grading issues
• Increased runoff affecting neighboring properties

4. Homeowners with Basements

Basements are highly susceptible to flooding from:

• Heavy rainfall
• Sewer backups (not covered by flood insurance)
• Groundwater seepage

Note:
Sewer backup is not covered by flood insurance. You need a separate water backup endorsement on your homeowners policy.

5. Homeowners with Mortgages in FEMA Flood Zones

If your property is in a high-risk flood zone (Zone A or V) and you have a federally backed mortgage, flood insurance is required.

6. Anyone Who Wants Peace of Mind

Even if you’re not required to have flood insurance, it’s often worth the cost for peace of mind.

Why:

• Flood damage is expensive
• FEMA disaster assistance is limited (and often comes as a loan, not a grant)
• Homeowners insurance doesn’t cover flood damage

Part 4: Real Examples of Flood Claims in Northwest Arkansas

Example 1: Springdale Basement Flood

• Home outside FEMA flood zone
• Heavy rain caused poor drainage to flood basement
• Damage to flooring, drywall, furnace, water heater: $18,000
• No flood insurance = $18,000 out-of-pocket

Example 2: Rogers New Development Runoff

• Home built in 2018, outside flood zone
• New subdivision built uphill in 2022
• Next heavy rain, water flooded garage and basement
• Damage: $22,000
• No flood insurance = $22,000 out-of-pocket

Example 3: Bentonville Creek Overflow

• Home near small creek, not in FEMA flood zone
• Severe storm caused creek to overflow
• Water entered home, damaging floors, walls, HVAC
• Total damage: $34,000
• Flood insurance: Fully covered (minus $1,000 deductible)

Example 4: Fayetteville Flash Flood

• Home in low-lying area, outside flood zone
• Flash flood from intense rainfall
• Water entered home through foundation
• Damage: $16,500
• Flood insurance: Fully covered (minus $1,000 deductible)

Part 5: How Much Does Flood Insurance Cost in Northwest Arkansas?

Flood insurance costs vary based on:

• Flood zone designation
• Elevation of your home
• Age of your home
• Foundation type
• Coverage amount
• Deductible

Typical Costs:

Flood Zone	Annual Premium
Low-risk (Zone X)	$400–$700
Moderate-risk (Zone B/C)	$600–$1,200
High-risk (Zone A)	$1,200–$2,500+
High-risk coastal (Zone V)	$2,000–$5,000+

Note:
Northwest Arkansas has very few Zone V areas (coastal high-risk). Most properties are Zone X, B, C, or A.

Coverage Limits:

NFIP Maximum Coverage:

• Building coverage: $250,000
• Contents coverage: $100,000

Private Flood Insurance:
Some private insurers offer higher limits and broader coverage.

Deductibles:

NFIP deductibles range from:

• $1,000 (most common)
• $2,000
• $5,000
• $10,000

Higher deductibles = lower premiums.

Part 6: How to Get Flood Insurance (Even Outside a Flood Zone)

Step 1: Contact an Independent Insurance Agency

Independent agencies like OZK Insurance can access both NFIP and private flood insurance options.

Step 2: Determine Your Coverage Needs

Consider:

• Replacement cost of your home
• Value of your contents
• Your deductible comfort level

Step 3: Get Quotes from Multiple Sources

Compare:

• NFIP coverage
• Private flood insurance

Why private flood insurance might be better:

• Higher coverage limits
• Broader coverage (may include basements, pools, etc.)
• Sometimes lower premiums (especially for low-risk properties)

Step 4: Understand the Waiting Period

Flood insurance typically has a 30-day waiting period before coverage begins.

Exception:
If flood insurance is required for a mortgage closing, coverage can begin immediately.

Important:
Don’t wait until a storm is forecasted. You can’t buy flood insurance once a flood warning is issued.

Part 7: Why Independent Agencies Make Flood Insurance Easier

Here’s why working with OZK Insurance is smarter than going direct:

1. We Compare NFIP and Private Options

We shop for both NFIP and private flood insurance to find you the best coverage at the best price.

2. We Understand NWA Flood Risks

We know which neighborhoods have drainage issues, which developments have caused problems, and which areas are at higher risk than FEMA maps suggest.

3. We Coordinate with Your Other Policies

We ensure your flood insurance works seamlessly with your homeowners policy and that you’re not paying for duplicate coverage.

4. We Help During Claims

Flood claims can be complex. We guide you through the process and advocate on your behalf.

FAQ: Common Questions About Flood Insurance in Arkansas

“Does my homeowners insurance cover flood damage?”

No — flood damage is specifically excluded from homeowners policies. You need separate flood insurance.

“What’s the difference between flood insurance and water backup coverage?”

Flood insurance covers water entering from outside (rain, rivers, lakes). Water backup coverage (an endorsement on your homeowners policy) covers water backing up through drains or sewers.

“Can I get flood insurance if I’m not in a flood zone?”

Yes — and it’s often very affordable. Properties outside high-risk zones qualify for Preferred Risk Policies with lower premiums.

“What if I’m buying a home? When should I get flood insurance?”

Get flood insurance before closing if possible. Remember the 30-day waiting period.

“Does flood insurance cover my basement?”

Only structural elements and essential equipment. Finished basements and personal property in basements have very limited coverage.