Flood Insurance

Flood Insurance, What is it?

Millions of property owners across the US each year are impacted by flooding conditions caused by either heavy rainfall or winter snow melt.  According to an analysis recently conducted by the Associated Press, there are roughly 5.1 million active flood insurance policies currently in effect throughout the US, a number that rose from 4.94 million in 2017.

Although that number is rising, that still leaves over 300 million Americans at risk for property damage due to flooding conditions.  Even as a homeowner or renter in an area considered at low or moderate risk of flooding, it is still important to have this policy because homeowners and renters policies do not cover flood damage.  Read further to find out more about why you should consider a flood policy.

Homeowners/Renters Policies Don’t Cover Damage From Flooding

Homeowners and renters policies cover many different things, but damage from flooding isn’t typically one of them.  Homeowners insurance typically only covers your home and possessions from things such as wind, hail, and fire damage, theft, and liability claims.  Other natural disasters like flooding or even earthquakes are not covered under homeowners.  A renters policy protects you, your belongings, and additional living expenses if your rented home becomes temporarily unlivable.  Unfortunately, your possessions are not covered under renters insurance if damage were to occur due to a flood.

What IS Covered by Flood Insurance?

Paying out of pocket to replace possessions lost by a flood could be extremely costly.  Securing flood insurance covers those costs up to a max limit, so you don’t have to pay out of pocket.  The items listed below may or not be covered as Flood Insurance covers the first floor and up. Electrical and plumbing systems, furnaces, water heaters, central A/Cs, heat pumps, and sump pumps are essential systems in a home that can be possibly covered.  Appliances, carpeting, window treatments, cabinets, paneling, built-in bookshelves, certain valuables, and personal property are also several other items that are possibly covered.  Lastly, foundation walls, anchorage systems, and staircases attached to your property are also a few other essential items that may be covered.

What ISN’T Covered?

Vehicles and outdoor property such as fencing, landscaping, and pools are a few items that aren’t typically covered by flood insurance.  It also is important to know that protection for items that are in basements or crawlspaces are not typically covered, either.  If any moisture or mold is found, but could have been avoided by the homeowner, flood policies normally will not cover damages in those situations either.

To find out more, contact one of our talented Risk Advisors today!


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