Flood insurance and what it covers

When insuring their home, many people consider only homeowners’ insurance. Nonetheless, many insurers do not include flood damage in the homeowner’s policies. 

Flood insurance covers a building and its contents against damage as a result of the flood. Homeowner’s insurance policy doesn’t cover destruction due to flood; therefore, any homeowner or business person in a region susceptible to floods should consider obtaining flood insurance coverage.

What does flood insurance cover? 

A flood insurance policy caters to two kinds of property: the contents and structure of your house.

The coverage for your home structure generally includes:

  • Electrical and plumbing
  • Carpets permanently installed on an unfinished floor
  • Foundation
  • Water heaters
  • Cooking stoves, refrigerators, and built-in appliances
  • Furnace and central air systems

Contents in your home protected the insurance policy include:

  • Furniture
  • Dishwashers
  • Clothing
  • Portable air conditioners and portable microwaves
  • Electronics
  • Washers and dryers

When you buy flood insurance, ensure to look carefully at categories of contents in your house. It is important to know the approximate value of each item and insurance policy coverage limits compared to your estimates. Certain categories may have limits below the value of your possessions that qualify.

For instance, furs and artwork usually have a limit of about 2,500 dollars— that is, the insurance company will reimburse at most 2,500 dollars in the event they get damaged. Due to the high value or priceless nature of items like fur and art, it would take few items, probably just one, to reach the limit. Therefore, you should find out whether there is more protection to buy for these specific categories.

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