A Complete Guide on What Flood Insurance Covers

Coastal communities across the U.S. saw increased flooding in 2020. According to The National Oceanic and Atmospheric Association, NOAA, this trend is supposed to continue into 2021.

Perhaps you’ve thought about buying flood insurance but you’re not really sure what flood insurance covers. This helpful guide will help you understand flood insurance policies to make sure that you will be covered in case of a disaster.

Types of Flood Insurance

Whether you are a renter, business owner, or homeowner the National Flood Insurance Program, NFIP, has a policy that is right for you.

Renters can protect their valuables and the things they care about in the event of a flood. Most plans will cover furniture, clothing, electronics, and more.

Business owners can protect the companies that they have built from flooding with a policy that is designed especially for their business. Protect your business assets and equipment with a business owner’s flood insurance plan.

Homeowners also have special policies that cover their homes and the valuables inside the home. There are special plans for people who own a townhome or condominium too.

What Does Flood Insurance Cover?

So what’s covered with flood insurance? Just about everything can be covered. Let’s look at this in more detail.

The essentials in your home are covered such as your electrical system, furnace, water heater, plumbing, and air conditioner. Your policy will also cover major appliances such as your laundry machines, refrigerator, and stove.

Carpeting and window treatments are covered by most plans as well as bookshelves wall cabinets and built-in features of your home. Depending on your policy sometimes your attached garage is also covered.

Personal property such as furniture, clothing, art, and electronics are covered if they are not stored in the basement. Read your plan carefully to make sure there isn’t a limit on the amount of personal property your plans cover.

Some policies also do not cover damages caused by mud after a flood. Reading your policy all the way through will help you determine if the policy has enough flood insurance coverage for you and the area where you live.

Purchasing Flood Insurance

Getting flood insurance can be a headache. It is important to research your options before you make a decision on a plan. Talk to an agent about all the particulars of an insurance policy and make sure all of your questions are answered before you decide to sign on the dotted line.

People who live in low or moderate flooding risk areas buy federal flood insurance and pay a standard rate that is set each year by FEMA. These rates are the same no matter where you decide to buy your plan or how much coverage you choose to purchase.

If you live in a high-risk area for flooding your plan will be tailored to your location and may have higher premiums. Your plan will take into account your proximity to water, the age and construction of your home, and how valuable your home is.

Do Your Homework So You Know What Flood Insurance Covers

Flood insurance covers a lot of the necessities that can help get you back on your feet after a disaster. Use this guide to help you choose a policy that fits your needs.

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