Flood insurance is a special policy that protects your home, and its contents if you choose, from damage caused by flooding. Flood damage is not covered in a standard homeowner’s policy, but it occurs much more often than you might expect, even in landlocked areas.
People with a federally backed mortgage must buy flood insurance if they live in a high-risk area. For others, flood insurance is optional—but still a good idea. As long as your community participates in the National Flood Insurance Program (NFIP), you can buy flood insurance. Your own insurance agent will sell the policy, but NFIP sets the rates and also pays any claims.
Home flood insurance rates are affordable and based on a variety of factors, including:
- Your home’s construction
- Your home’s age
- Your area’s risk level
- The type and amount of coverage you choose
- The deductible level you choose
In some cases, your lender may impose a maximum allowed deductible.
Depending on the area where you live and whether you own or rent, you may choose from:
- Building-only coverage, up to $250,000, or
- Contents-only coverage, up to $100,000, or
- Building and contents coverage, with contents covered at 40 percent of the building coverage (not available in high-risk areas)
Businesses can buy flood insurance to cover their building and contents for up to $500,000 each.
Flood Insurance coverage for your building includes the building itself and its foundation, as well as permanent fixtures, such as electrical and plumbing systems. It also covers large appliances like refrigerators and stoves, along with built-in appliances and installed carpeting. Flood Insurance coverage for your contents protects personal property such as furniture, electronics and portable appliances, so long as they are not stored in a basement, crawl space or other enclosed area under your home.
In some cases, you may be eligible to receive a replacement cost value (RCV) settlement on a single-family, primary residence. This provides the full value of the damages. Policies on other buildings and contents receive only actual cash value (ACV) coverage, which is RCV at the time of loss, minus depreciation.
Floods can and do happen everywhere, so the best way to fully protect your home is to buy a flood insurance policy. Request a free flood insurance quote today, and see just how affordable flood insurance rates can be. You will rest easier knowing you are prepared for the worst.
For a free flood insurance quote please call 1-866-207-8389 .