Excess flood insurance covers flood damage that exceeds the most the National Flood Insurance Program (NFIP) will pay. An NFIP policy covers a home up to $250,000 on the building and $100,000 on contents, and a commercial building up to $500,000 on each.[1][2] An excess policy sits on top of those limits: Neptune's residential excess goes up to $7 million on the building and $500,000 on contents, in excess of the NFIP maximums, with a $0 deductible.[3]
If your home would cost more than $250,000 to rebuild and you are buying flood insurance anyway, this guide helps you decide whether excess flood is worth it, explains how it works with the NFIP, and covers what it costs. For a quote, go to our excess flood insurance page.
What is excess flood insurance?
It is a second flood policy that pays after the first one is exhausted. The first layer is usually an NFIP policy at its maximum limits. When a flood causes more damage than the NFIP policy pays, the excess policy pays the rest, up to its own limit. Neptune's program sheet states it plainly: "All coverage amounts are in excess of the maximum available under the NFIP."[3]
Why is NFIP flood insurance capped at $250,000?
Because the NFIP is a federal program that has set a maximum limit for each type of building. For a home, the maximum is $250,000 on the dwelling itself and $100,000 on contents; for non-residential buildings it is $500,000 on each.[1][2] These are fixed amounts regardless of the value of your home, so many California homes are underinsured for flood if they carry only the NFIP.
Who needs excess flood insurance in California?
Anyone whose property would cost more to rebuild after a flood than the NFIP limit, and who has real flood exposure. That includes homes in high-risk coastal or riverine flood zones and in the Sacramento–San Joaquin Delta, and hillside homes just below burn scars where mudflow is a risk. It also includes owners who couldn't absorb a flood loss above $250,000 from their savings.
Remember that low-risk zones flood too: FEMA reports that one-third of NFIP claims from 2013 to 2023 came from outside current high-risk flood areas.[5] Our guide to flood insurance in California covers the first layer of protection.
What does excess flood cover that the NFIP doesn't?
Beyond higher limits, some excess programs add coverages the NFIP doesn't provide. Neptune's options include:
| Coverage | NFIP | Neptune excess (residential) |
|---|---|---|
| Building | Up to $250,000[1] | $50,000 to $7,000,000 above the NFIP[3] |
| Contents | Up to $100,000[1] | $10,000 to $500,000 above the NFIP[3] |
| Temporary living expenses | Not included[1] | Optional[3] |
| Replacement cost on contents | No; contents always at actual cash value[4] | Optional[3] |
| Basement contents, pool repair and refill | Limited or excluded[1] | Optional[3] |
| Loss of rental income | Not included[1] | Optional[3] |
| Deductible | Chosen on the policy | $0[3] |
| Waiting period | 30 days in most cases[5] | 10 days[3] |
Commercial excess from Neptune adds business interruption and replacement cost on the building, with building limits up to $10 million and contents up to $1 million.[3]
Do I need an NFIP policy to buy excess flood?
Usually yes, at the NFIP's maximum limits, because the excess policy is written to start paying at those limits. If your NFIP policy carries less than the maximum, there is a gap between what the NFIP will pay and where the excess kicks in, and you pay that gap. Alternatively, you could buy a private primary flood policy with very high limits from the first dollar, which can replace both layers.
Also keep the NFIP's 80% rule in mind. If your home is your principal residence and your NFIP building coverage is within 80% of its replacement cost, NFIP building claims are paid at replacement cost; contents are always paid at actual cash value.[4] For most homes that need excess, the NFIP building limit is the full $250,000.
Is excess flood insurance worth it?
It is worth pricing whenever the gap between your rebuild cost and $250,000 is money you could not cover after a flood. Excess premiums are based on the property's flood risk and the limit selected, and a $0 deductible means the excess policy pays from the first dollar of loss above the NFIP layer.[3] Compare the premium with the uninsured gap, not with the NFIP premium.
Menlo is appointed with Neptune and Aon Edge, both of which write excess flood, and can quote the NFIP layer underneath through NFIP Direct or private primary flood through Neptune.[6]
Frequently asked questions
What is the maximum amount of flood insurance you can get?
What is the 80% rule in flood insurance?
For a principal residence, NFIP building claims are paid at replacement cost if building coverage is within 80% of the home's replacement cost; contents are always paid at actual cash value.[4]
Does excess flood insurance have a waiting period?
This guide is for educational purposes and summarizes FEMA and NFIP publications and carrier program documents. Coverage, eligibility and prices change, and your policy's terms control. Menlo Insurance Services (CA license 6020106) is a licensed broker that may earn a commission on a placement and does not guarantee that any coverage or price will be available. Excess flood insurers may be non-admitted, and non-admitted insurers are not backed by the California Insurance Guarantee Association. Each quote names its insurer and whether it is admitted.
The Bottom Line
The NFIP stops at $250,000 on a home's building and $100,000 on contents.[1] If rebuilding would cost more, excess flood picks up where the NFIP stops, with high limits, a $0 deductible and coverages the NFIP lacks.[3] Keep the NFIP layer at its maximum so there's no gap underneath.
References
- 1.Neptune Flood. “Residential Flood Insurance: the comparison (Neptune vs NFIP).” 2026. https://6041899.fs1.hubspotusercontent-na1.net/hubfs/6041899/Carrier%20Store%20Resources/Neptune/Residential%20Agent%20Flyer%20%289%29.pdf ↩
- 2.Neptune Flood. “Commercial Flood Insurance: the comparison (Neptune vs NFIP).” 2026. https://6041899.fs1.hubspotusercontent-na1.net/hubfs/6041899/Carrier%20Store%20Resources/Neptune/Commercial%20Agent%20Flyer%20%2819%29.pdf ↩
- 3.Neptune Flood. “Excess Flood with Optional Primary Coverages (program sheet).” 2026. https://6041899.fs1.hubspotusercontent-na1.net/hubfs/6041899/Carrier%20Store%20Resources/Neptune/Excess%20Flood%20%289%29.pdf ↩
- 4.FEMA, National Flood Insurance Program. “NFIP Summary of Coverage (December 2023): How flood damage is paid.” 2023. https://agents.floodsmart.gov/sites/default/files/media/document/2025-07/fema-nfip-summary-coverage-brochure-12-2023.pdf ↩
- 5.FEMA, National Flood Insurance Program. “Fast Facts on Floods & Flood Insurance (November 2024).” 2024. https://agents.floodsmart.gov/sites/default/files/media/document/2025-07/fema-nfip-fast-facts-flood-insurance-infographic-11-2024.pdf ↩
- 6.Menlo Insurance Services. “Excess flood insurance (appointed markets: Neptune, Aon Edge).” Accessed 2026-09-27. https://www.menloinsurance.com/excess-flood-insurance ↩