What does flood insurance cover?

Here’s a breakdown of what standard flood insurance policies typically cover:

Building Coverage

Protects the physical structure of your property, including:

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: Building and contents coverage are usually purchased as separate policies.
Detached Structures: Coverage for sheds or detached garages might be limited (around 10% of the building coverage limit) or require separate coverage.
Basements: 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: Damage caused by fire, earthquakes, etc., wouldn’t be covered.
Living expenses if displaced: Unlike homeowners insurance, flood insurance doesn’t cover temporary housing costs if you cannot live in your home.
Landscaping, wells, septic systems: Damage to external structures or those underground typically isn’t covered.
Financial losses not directly from flood: 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: Some private companies offer flood insurance, potentially with additional coverage options.

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