Flood insurance is a special policy that protects your home, and its contents if you choose, from damage caused by flooding. Flood damage is not covered in a standard homeowner's policy, but it occurs much more often than you might expect, even in landlocked areas.
People with a federally backed mortgage must buy flood insurance if they live in a high-risk area. For others, flood insurance is optional–but still a good idea. As long as your community participates in the National Flood Insurance Program (NFIP), you can buy flood insurance. Your own insurance agent will sell the policy, but NFIP sets the rates and also pays any claims.
Home flood insurance rates are affordable and based on a variety of factors, including:
In some cases, your lender may impose a maximum allowed deductible. Depending on the area where you live and whether you own or rent, you may choose from:
up to $250,000
up to $100,000
with contents covered at 40 percent of the building coverage (not available in high-risk areas)
Businesses can buy flood insurance to cover their building and contents for up to $500,000 each.
Flood Insurance coverage for your building includes the building itself and its foundation, as well as permanent fixtures, such as electrical and plumbing systems. It also covers large appliances like refrigerators and stoves, along with built-in appliances and installed carpeting. Flood Insurance coverage for your contents protects personal property such as furniture, electronics and portable appliances, so long as they are not stored in a basement, crawl space or other enclosed area under your home.
Building flood insurance coverage will also pay for removal of debris after cleanup. Each flood insurance policy covers only one building. If you want other buildings on your property insured, you will need to buy separate policies for each of them. The exception is a detached garage, which is covered at up to 10 percent of your building coverage. If you know a flood is coming and take steps to prevent damage to your insured home, like buying sandbags, you also may receive up to $1,000 in reimbursement for these expenses.
In some cases, you may be eligible to receive a replacement cost value (RCV) settlement on a single-family, primary residence. This provides the full value of the damages. Policies on other buildings and contents receive only actual cash value (ACV) coverage, which is RCV at the time of loss, minus depreciation.
Floods can and do happen everywhere, so the best way to fully protect your home is to buy a flood insurance policy. Request a free flood insurance quote today, and see just how affordable flood insurance rates can be. You will rest easier knowing you are prepared for the worst.
For a free flood insurance quote, please call 1-866-380-3870 or get a quote online.