What Flood Insurance covers

What does my policy cover?

Purchasing flood insurance will help protect the things you value. The National Flood Insurance Program (NFIP) offers two types of coverage – building coverage and contents coverage – to protect your home and belongings.

Most homeowners insurance does not cover flood damage. Only flood insurance covers the cost of rebuilding after a flood.

Even if your community has never experienced it, flooding can happen anywhere at any time. Poor drainage systems, summer storms, melting snow, neighborhood construction, and broken water mains can all result in flooding.

In high-risk areas, there is at least a?one-in-four chance?of flooding during a 30-year mortgage. In fact, from 2014 to 2018, policyholders outside of high-risk flood areas?filed over 40 percent of all NFIP flood insurance claims?and required one-third of federal disaster assistance for flooding.

In the event of a Natual Disaster am I covered?

Federal disaster assistance is only made available when there is a Presidential disaster declaration, and most flood events do not result in a declaration. Disaster assistance typically comes in the form of loans that must be repaid – with interest!

Disaster assistance from FEMA and the U.S. Small Business Administration is designed to kick-start recovery but is not enough to restore your home to its pre-disaster condition or to replace your treasured household items.

Flood insurance does not have to be paid back, and it is designed to restore your property to its pre-disaster condition.

Here are examples of what’s covered with NFIP flood insurance:

Commercial Flood Insurance coverage protects your:

• Electrical and plumbing systems
• Furnaces and water heaters
• Refrigerators, cooking stoves, and built-in appliances like dishwashers
• Permanently installed carpeting
• Permanently installed cabinets, paneling, and bookcases
• Window blinds
• Foundation walls, anchorage systems, and staircases.
• Detached garages
• Fuel tanks, well water tanks and pumps, and solar energy equipment
• Coverage limits:?$500,000 for the building and $500,000 for the building contents

Homeowner coverage protects your:

• Foundation and electrical & plumbing lines
• Personal belongings such as clothing, furniture, and electronic equipment
• Curtains
• Washer and dryer
• Portable and window air conditioners
• Microwave oven
• Carpets not included in building coverage (e.g., carpet installed over wood floors)
• Valuable items such as original artwork and furs (up to $2,500)
• Coverage limits:?$250,000 for the building and $100,000 for the building contents.

If you’re a renter, a renters flood insurance policy will protect the things you care about in the event of a flood. Ask your landlord to be sure he/she has coverage for your building.

Rental coverage protects your:

• Personal belongings such as clothing, furniture, and electronic equipment
• Coverage limits:?$100,000 for contents-only coverage. Starting policy costs: $99/year

Contents and building coverage are?purchased separately,?and there are always separate deductibles. Unless you have contents coverage, your flood-damaged belongings are not covered.

What isn’t covered by Flood Insurance?

When determining coverage, the cause of flooding matters.

Flood insurance covers losses directly caused by flooding. In simple terms, a flood is?an excess of water on land that is normally dry,?affecting two or more acres of land or two or more properties.

For example, damage caused by a sewer backup is covered if the backup is a direct result of flooding. If the sewer backup is not caused directly by flooding, the damage is not covered.

Items not covered by building or contents coverage:

• Temporary housing and additional living expenses incurred while the building is being repaired or is unable to be occupied
• Property outside of an insured building. For example, landscaping, wells, septic systems, decks and patios, fences, seawalls, hot tubs, and swimming pools
• Financial losses caused by business interruption
• Currency, precious metals, stock certificates, and other valuable papers
• Cars and most self-propelled vehicles, including their parts
• Personal property kept in basements

Waiting periods for your coverage

Typically, there’s a 30-day waiting period from the date of purchase until your flood insurance policy goes into effect.

Exceptions to the 30-day waiting period

No waiting period:

• If you purchase flood insurance while making, increasing, extending, or renewing your mortgage loan.
• If you change your flood insurance coverage on your insurance policy renewal bill.
• In the event of flooding after a wildfire, if a property is impacted by flooding on burned federal land and the policy is purchased within 60 days of the wildfire-containment date. Waiving of the waiting period is determined at the time of claim.

1-day waiting period:

• If a home or business is newly designated to be in the high-risk flood area and you purchase flood insurance within the 13-month period following a map update.

Policy term and expiration

NFIP flood insurance has a?policy term of one year.

All policies expire at 12:01 am on the last day of the effective term, but you remain covered for 30 days after the expiration. Claims for losses that occur in this grace period will be honored, provided that the full renewal premium is paid by the end of the 30-day grace period.

Letting your policy lapse could cause you to lose any discounted rates you have been receiving, and you may not be in compliance with the terms of your mortgage agreement.

Have questions about your coverage??

Whether you’re a homeowner, business owner, or renter, the NFIP offers flood insurance coverage to help you protect the life you’ve built. Talk to your insurance agent to learn more about what is and isn't covered, coverage amounts, and deductibles of your current policy. No matter what insurance provider you use or what state you live in,?you will get the coverage you need at a rate you can trust.