Here’s a breakdown of what standard flood insurance policies typically cover:
Building Coverage
Protects the physical structure of your property, including:
- Foundation, walls, and floors
- Electrical and plumbing systems
- Central heating and air-conditioning systems
- Built-in appliances (dishwashers, refrigerators, etc.)
- Permanently installed carpeting and paneling
Contents Coverage
Protects your personal belongings inside your home or business, such as:
- Clothing, furniture, and electronics
- Curtains
- Microwaves and portable appliances
- Valuables (although jewelry, artwork, etc., might have sub-limits, meaning there’s a lower maximum payout)
Additional Coverage Notes
- Separate Policies:Â Building and contents coverage are usually purchased as separate policies.
- Detached Structures:Â Coverage for sheds or detached garages might be limited (around 10% of the building coverage limit) or require separate coverage.
- Basements:Â Coverage for items in basements can be restricted.
- Replacement Cost vs. Actual Cash Value:
- Replacement Cost: Pays to repair or replace items with new ones of similar kind and quality.
- Actual Cash Value: Factors in depreciation, so you might receive less than the full replacement cost.
What Flood Insurance DOES NOT Cover
- Damage from events other than flooding:Â Damage caused by fire, earthquakes, etc., wouldn’t be covered.
- Living expenses if displaced:Â Unlike homeowners insurance, flood insurance doesn’t cover temporary housing costs if you cannot live in your home.
- Landscaping, wells, septic systems:Â Damage to external structures or those underground typically isn’t covered.
- Financial losses not directly from flood:Â Lost business income due to flooding might not be covered.
Where to Get Flood Insurance
- National Flood Insurance Program (NFIP): Most people get flood insurance through this federal program. https://www.floodsmart.gov/
- Private Insurers:Â Some private companies offer flood insurance, potentially with additional coverage options.