Did you know that all 50 states are subject to flash floods? They can reach heights of 10-20 feet.
If you’re considering flood insurance, you might ask yourself, what does flood insurance cover? You might wonder if it’s even worth it. Read this guide to determine what’s covered and what’s not to decide if flood insurance is right for you today!
Appliances
Flood insurance coverage handles built-in appliances, ranges, refrigerators, washing machines, and more. Even freezers and window air conditioners receive coverage with flood insurance.
It could also cover your dryer. Be sure to check with your insurance agent about coverage.
Cabinets and Paneling
Flood coverage could include damaged cabinets. If only some cabinets were affected, it might be tricky to find new cabinets that match the old. It could also cover bookcases, wallboards, and paneling.
Detached Garages
You could even use it for your detached garage. Keep in mind that it’ll be deducted from the total amount of building coverage that you have.
Coverage could include:
- HVAC systems
- Flooring
- Blinds
- Electrical Systems
- Walls
- Plumbing
- Appliances
- Clothes
- Technology
- Valuables
- Furniture
Building Coverage
Flood insurance includes content and building coverage. Window blinds, plumbing, electrical problems, well water tanks, and stoves are covered.
Permanently installed carpeting, bookcases, cabinets, and paneling are covered too. A home and its foundation receive coverage.
This could include foundation walls, insulation, drywall, anchorage systems, and staircases.
Other Coverage
If your water main breaks and damages your home and your neighbor’s, you could receive coverage. If you have a sewer backup due to flooding, it might receive coverage.
If an above-ground pool collapses, it could receive coverage. Electronics, furniture, and clothing could be covered if they’re not in the basement.
It could include couches, toys, computers, and televisions. There will be a certain amount that your coverage will pay up to. Without flood insurance, you’ll need to pay out of pocket.
How Much Flood Insurance Do I Need?
Check your current policy because most homeowners’ insurance doesn’t include flooding. Even if it states water damage, that could be a specific problem such as a broken pipe. Floods might not be covered with basic water damage coverage.
There are maximum amounts that you can receive through the National Flood Insurance Program. Flood damage might not cover your entire home.
Many instead choose to buy flood insurance through a private company instead of the National Flood Insurance Program. An independent insurance agency can let you know how much coverage you need. You’ll want to cover as much of your home as possible.
What Does Flood Insurance Not Cover?
Earth movement, financial loss, additional living expenses, and vehicles aren’t normally covered by flood insurance. Check with your insurance agent to see what won’t be covered. Vehicles might be covered by comprehensive or auto insurance.
If you need to have temporary housing while your home is being fixed, you normally won’t receive funds for that. Currency, paper valuables, and precious metals aren’t covered either. Outdoor property such as septic systems, landscaping, patios, fences, and decks won’t receive coverage.
Heater malfunctions and pipe bursts aren’t covered. Only if it’s caused by flooding from a storm. Your basement’s contents will receive coverage, but the flooring and walls won’t.
If you could have prevented mold or mildew damage, it won’t be covered. Swimming pools normally don’t receive coverage either.
Trusts and wills don’t receive coverage. If you lose access to the insured property, you won’t receive coverage. Also, damage to trees, plants, hot tubs, and seawalls.
Do You Need Flood Insurance?
Flood insurance is a good idea if you want to be covered in case of an emergency. You might not need it but it’s good to have. Even if you’re outside of a high-risk area, there’s still a chance. Even if you only flood one inch, it can cost you thousands of dollars to fix.
It’s required in certain high-risk areas. If your area has flood-caused erosion, mudflow, or flood hazards, they could need it. Your lender might require you to buy it. Even if your home is in a lower-risk area, your lender might require you to have it.
Is Private Insurance Worth It?
If your home is over the limit of the National Flood Insurance Program, then you’ll want to have private insurance. Private insurance could either replace or supplement this insurance.
Some companies will allow you to place flood insurance on top of your current policy. Private flood insurance might offer you lower rates than the federal option.
It might also require fewer add-ons. The government will have someone come to your home to create an elevation certification. This will decide your insurance rate.
Speak to an insurance agent about limitations, exclusions, and coverage details. Look into other policies and add-ons to your current homeowner’s insurance.
How It Works
You’ll receive money on a replacement cost basis. It’ll include the actual cash value of your primary residence.
It also includes depreciation over time. Even for vacation homes, they’ll look at your primary residence. The National Flood Insurance Program has a limit of $250,000. Certain private insurance companies will have the same limits.
Answering the Question, What Does Flood Insurance Cover?
After reading this guide, you should be able to answer the question, what does flood insurance cover? Take your time deciding what the best option for you is.
Would you like to read more informative and educational content? Be sure to check out our other articles today!
