Flood insurance through the National Flood Insurance Program (NFIP) includes two separate coverage types: Building and Contents. Each has its own premium and deductible and can be purchased through separate policies.
Building Coverage
This covers:
- Electrical and Plumbing Systems
- HVAC, water heaters, furnaces
- Permanently installed carpeting, cabinets, and paneling
- Foundation walls and staircases
- Detached garage (one only)
- Utility-related equipment
Contents Coverage
This covers:
- Furniture, electronics, clothing, etc.
- Portable and laundry appliances
- Freezers and contents
- Window treatments such as curtains
What is not covered?
These are not covered under these types of policies:
- Preventable damage like mold from neglect
- Temporary housing, food, or other living expenses
- Cars and any vehicles
- Outdoor property such as trees, plants, swimming pools, hot tubs, decks
- Personal property in basements
How can I buy flood insurance?
You can purchase flood insurance for your home whether you are inside or outside of a flood plain either directly through a private insurance agent or insurance company who participates in the NFIP. Plan ahead as a flood insurance policy normally goes into effect 30 days after purchase.
How much does flood insurance cost?
Premiums vary depending on factors such as your risk level for a flood loss, the amount of coverage you choose, the type of coverage needed, and your deductible.
Myths About Flood Insurance
"Only people living in flood plains need to be concerned about flooding."
- If it can rain, it can flood. Flood insurance is needed and available in all flood zones.
"My homeowners policy will cover if I have direct flood damage to my home."
- Standard homeowners policy language clearly states flood is excluded. Note that many insurance companies exclude sewer and pump failure. Many companies do still of the ability to buy an endorsement with coverage for sewer failure.
"We experienced a once in a 500-year flood so I shouldn't worry about flooding during my lifetime."
- The term "500-year flood" refers to an area that has a 0.2% chance of experiencing a flood in any given year. It does not mean a flood of that magnitude only happens once every 500 years. It reflects the likelihood based on historical data.
"You can't buy flood insurance if you are located in a high flood risk-area."
- Flood insurance is available no matter where you life if your community participates in the NFIP. Lenders providing a federally regulated mortgage loan must require borrowers in special flood hazard area to purchase flood insurance.
"Federal disaster assistance will pay for flood damage."
- Before becoming eligible for disaster assistance, it must be declared a federal disaster area. Federal disaster aid does not always come in a grant. Most are a low-interest rate loan which must be paid back.
