What Does Flood Insurance Cover?

Posted in Home Insurance

August 28th, 2009

If you live in an area that is more likely to suffer floods – and is backed by the National Flood Insurance Program – then you want to get your hands on a good flood insurance policy. Why? Because if you find that you’ve been the victim of a flood and only own a standard homeowners policy, you’ll find yourself having to come out of pocket for damages as this won’t be covered.

Of course, before you do obtain a flood insurance policy from your insurance provider, it’s a good idea to understand exactly what it will cover. This way, you can make sure that your home is properlyprotected in case you become a victim of this terrible natural disaster.

Losses Covered

Let’s take a look at what a flood insurance policy would cover in your home:

• Structural losses. Your flood policy will cover structural losses, including damage to walls or the foundation of the dwelling. Also included in this category are the electrical system and plumbing, central air/heating, kitchen appliances, water heaters, permanent carpet, flooring, cabinetry, window blinds, and your drywall. If you have a detached garage, it may also be covered if its value is equal to less than 10% of your dwelling coverage. Also, the costs associated with removing debris are covered.
• Personal property losses. Some of the property that is covered in a flood insurance policy includes clothes, furniture, non-major appliances (microwave, washer/dryer), small household appliances (fans), electronics, rugs, food, and even artwork. The amount covered is up to $2,500.

It’s good to know that if you’re covered by the National Flood Insurance Program, the payout for structural losses is up to $250,000. On the other hand, the payout for personal property or goods is $100,000. If you need higher limits then you’ll need to seek additional coverage from a private insurer.

What’s Excluded?

There are some items that will be excluded from your policy. For example, your money, gold, and stock certificates won’t be covered. Also, cars located outside of the dwelling won’t be included. If you have any other buildings aside from detached garages, they won’t be included either. And if you suffer damage to you landscaping, trees, or swimming pools, these items won’t be covered.

It’s always good to know just what will be covered in your flood policy. This way, if you need additional coverage for your items, you can acquire it.