Flood Insurance for Homeowners: What's Covered?

Flood insurance for homeowners is an important yet often overlooked form of insurance. Flood damage is not covered on a typical homeowners insurance policy. Although the Federal Emergency Management Agency (FEMA) sometimes provides help for victims of flood damage, it does not provide coverage for personal property, and often this assistance is structured as a loan which must be repaid.

Keep reading this article to learn more about flood insurance for homeowners. You'll learn what it covers, whether it is included in a standard homeowners policy, the average cost of flood insurance, what the National Flood Insurance Program is, and how you can buy flood insurance.

Flood Insurance for Homeowners: What Does it Cover? 

Flood insurance for homeowners plays a crucial role in protecting your home as well as personal property. Just as you buy auto insurance, home insurance, renters insurance, or life insurance, you should talk to your insurance agent about how to buy flood insurance. So, let's talk about what it will cover.

Depending on the type of flood insurance you carry, it covers various things.

• The primary coverage on a flood insurance policy covers the structure of the home, including the permanently installed fixtures, finishes, and systems.  This typically includes your home's electrical system, plumbing, furnace or heater, water heater, built-in appliances,  flooring, and permanently installed cabinets, bookcases, and fixtures.
• Flood insurance can also cover the contents of your home, including  your clothes, electronics, furnishings, and other personal belongings.

Is Flood Insurance for Homeowners Included in Standard Homeowners Policy? 

Some types of water damage may be covered by your home insurance policy, but generally speaking, damage caused by rainfall, rising water, or runoff will not be covered. For example, if your kitchen pipes burst and flood your kitchen and living room, your home insurance would typically cover the repair or replacement of your damaged floors, walls, and your personal property. However, a standard homeowners policy does not cover actual flooding from rising water caused by a source outside of the home.

This is why it may be crucial for you to buy flood insurance regardless of whether you live in a high-risk flood zone. All it takes is one bad storm to put your home and personal property in danger, and insurance coverage specifically for floods is the only way to protect against this kind of damage

What Does Flood Insurance Cost to Protect Your Personal Property? 

Flood insurance costs are determined by several factors according to the federal government's website floodsmart.gov. Those factors include whether your home is in a high-risk flood zone (or in any flood zone at all), the type of flood insurance you want to purchase, the deductible you choose, the amount of coverage you choose, where your home or insured structure is located, the age or design of your home or insured structure, and the location of it. The elevation of the property may also be a factor for properties located in or near flood zones.

Depending on who holds your mortgage and whether FEMA’s flood map indicates you’re in a flood zone, you may be required to carry a certain amount of flood insurance for the property.  Other times, flood insurance is considered an optional coverage. Keep in mind that being told by your lender that it isn't necessary to buy flood insurance isn't a guarantee a flood won't happen, and remember that traditional home insurance won't replace your personal property or repair your home if your property is damaged by a flood.

What Is the National Flood Insurance Program?  

The National Flood Insurance Program (NFIP) is a special program managed by the Federal Emergency Management Agency that is designed to provide flood insurance in higher-risk areas where private insurers may be unwilling to offer flood coverage options. In certain cases, flood insurance purchased through this program may be subsidized by the Federal government to make it more affordable for families to purchase. 

How to Buy Flood Insurance 

When you're ready to buy flood insurance to cover your personal property from flood damage, you should work with an experienced insurance agent. The right agent will be able to help you compare options from the National Flood Insurance Program as well as private insurers to figure out what option is best for you.  Additionally, they will be able to help you figure out how much coverage to purchase.

At Comma Insurance, we shop around to help you find the perfect flood insurance coverage at the right price to protect your belongings and fit your needs. We don't work for the benefit of one insurance company. We work to benefit our clients. To learn how we could help you, start your free quote now!