Flood insurance is the coverage that is excluded from standard Homeowners policies. Many people assume that Flood is covered under their standard Home insurance policies only to find out that it is excluded when they make a claim. Certain water damage is covered under standard Home insurance policy, but most flooding damages are not. One way to know what water damage is covered under which policy is this (do not rely on it entirely though): falling water from “up-to-down” the sky is typically covered by your standard home insurance policy (left a window open over the weekend and there was a heavy rain that damaged your floors and furniture; during rain your roof started to leak and water soaked thru into your house causing damage); but rising water from “down-to-up” is typically covered by Flood insurance policy (you live by the river or lake, where levels have been raised after a week of non-stop rain, and flooded your house; you live in the city and after a few weeks of rain all the sewage system was full and water kept on rising, reached your home and flooded it). In simple terms, a flood is an excess of water on land that is normally dry. If the land that is normally dry becomes wet, and therefore caused damages to your property would be covered by a Flood insurance, which is a separate insurance policy from your standard Home insurance.
Another common cause of loss is a mudslide. It happens when excess amount of water softens the grounds and develops the mud that slides down the hill causing damage to your property.
Flood insurance premium depends on the location of your home and the amount of coverages you need. There are flood zones established by National Flood insurance program and the higher flood prone area you live in – the higher the rates are for Flood insurance.
Flood insurance offers coverage for a building/dwelling and personal property:
Examples of building coverage includes:
- Coverage to the building itself along with foundation
- Plumbing and electrical systems
- Air conditioning units and water heaters
- Built-in appliances, cooking stoves and refrigerators
- Permanently installed carpeting
- Window blinds
- Debris removal costs
Examples of personal property coverage includes:
- Some personal belongings such as clothing, furniture and electronics
- Portable air conditioners, dishwashers and microwaves
- Washer and dryer
- Food freezer and food in it
Flood insurance policies have tons of exclusions and limitation. In addition, all new policies have a minimum of 30 days waiting period with a few exceptions.
Contact us today for a free quote and consultation about your flood insurance needs.