Coverage for Building Property: Flood insurance helps protect the physical structure of your home, including the foundation, as well as plumbing and electrical systems, central air and heating systems, and attached bookcases, cabinets, and paneling. It can also cover a detached garage (other detached structures may require a separate policy). The coverage is typically based on the replacement cost basis for a primary residence (the cost to repair the home in today's dollars) and actual cash value (which factors in depreciation) for a vacation home. The maximum coverage limit for building property is $250,000.
Coverage for Personal Contents: Flood insurance also provides coverage for personal belongings such as clothing, furniture, electronics, curtains, some portable appliances, freezers, and the food within them. Certain valuables, like art, may also be covered up to a specified limit. The payout for personal contents is usually based on an actual cash value basis, which takes depreciation into account. The maximum coverage limit for personal contents is $100,000.
Definition of Flood: A flood is defined as a general and temporary condition of partial or complete inundation of normally dry land area. This can include the overflow of inland or tidal waters, the rapid accumulation or runoff of surface waters, and mudslides caused by flooding. It also encompasses the collapse or subsidence of land along the shore of a lake or body of water due to erosion or undermining caused by waves or currents exceeding cyclical levels.
Separate Policy: Flood insurance is typically purchased as a separate policy and may be available at an additional premium. It is important to consult with your insurer or insurance agent to obtain further information about securing flood insurance, including its availability, terms, and coverage options.
National Flood Insurance Program (NFIP): Flood insurance is often available through the NFIP, which operates in participating communities. The NFIP offers separate coverage for contents and structure. It is recommended to consult with the NFIP, your insurer, or insurance producer to determine the appropriate coverage for your needs.
It's important to be aware that standard homeowners insurance policies do not cover flood damage to property, contents, and structures. To protect against flood-related losses, obtaining a separate flood insurance policy is necessary.