Flood insurance refers to the insurance coverage of a policyholder in terms of property loss and casualties resulting from cases of flooding. In evaluation of risk factors for specific properties, insurance service providers often refer to topographical maps. Those that exhibit lowlands, floodways and floodplains which are vulnerable and exposed to flooding. In the United States, 20% of homes prone to flooding are insured. However, it is worth noting that casualties resulting from flooding are not covered in the standard homeowners’ insurance policy. Due to its sensitivity and the vast damages caused, some of the companies do not even provide for insurance coverage against floods.
However, for those having insurance policies on flooding, it is important to clearly understand the terms and conditions of the policy, what is covered and what is not covered. Also, the level of property coverage differs from one insurance provider to the other as well as the type of insurance policy taken by the policyholder. Some policies may cover more properties than others. The NFIP for example, has two policies namely: One that covers the actual building up to $250,000 and the other one which covers personal property up to $100,000. Interestingly, the federal government flooding program allows the citizen to either buy one or both. Most insurance policy providers will provide coverage similar to those of NFIP, with just a slight difference in some.
Therefore, taking NFIP as the central reference, the following items are covered in the flooding policy package:
- Your home and its foundation
- Electrical and plumbing systems
- HVAC equipment like air conditioning, furnaces, and water heaters
- Kitchen appliances, including your refrigerator, stove, and built-ins such as your dishwasher
- Permanently installed carpeting over an unfinished floor
- Permanently installed wallboard, paneling, bookcases, and cabinets
- Window blinds
- Detached garages (limited to 10% of your home policy)
- Debris removal
- Water heater
The NFIP policy that covers your personal property will cover property such as:
- Clothing, furniture, and electronic equipment
- Curtains
- Window AC units
- Portable microwaves and dishwashers
- Carpets not covered by your building policy
- Washer/dryers
- Your freezer and frozen food
- Up to $2,500 in valuables, such as art and furs
At this point, it would also be wise to provide a list of what is not covered.
- Precious metals
- Stock certificates
- Bearer bonds
- Cash
- Trees
- Plants
- Wells
- Septic systems
- Walkways
- Decks
- Patios
- Fences
- Hot tubs
- Swimming pools
- Boat houses
- Retaining walls
- Storm shelters
- Temporary housing and other living expenses
- Loss of income
- Cars
Again, it is critical to understand what is covered in case of flooding by your policy providers since all of them may not be the same.
