What Does Flood Insurance Cover?

Flood insurance isn’t something to look over, especially if you live in a part of the country prone to hurricanes. If you have a basement, you should think about getting coverage anyway since they can flood during heavy rainfall. You’ll know if floods are more likely to happen in your state if flood insurance is more expensive, but do you specifically need it? Let’s look at what flood insurance covers, so you can make your own choice.

Standard Home Insurance

House insurance paperwork

Homeowners insurance doesn’t cover any flood damage, but it will cover a small amount if it rains. If your home is overrun from rising bodies of water like streams, rivers, oceans, or lakes, you won’t be covered.

There are 2 Standard Insurance Packages from NFIP

The National Food Insurance Program of the US covers your personal property, or your actual home. Home insurance covers up to $250,000, while personal property is up to $100,000. If the damage is too severe for you to clean up yourself, consider hiring a restoration company.

What It Covers

NFIP covers the cost to rebuild, or the value of the home – whichever is the cheapest. Home insurance covers the following damages.

  • The foundation of your home
  • Plumbing and electrical systems
  • Furnaces, water heaters, and air conditioners
  • Most kitchen appliances like stove, dishwasher and refrigerator
  • Installed carpeting
  • Installed paneling, wallboards, cabinets, and bookcases
  • Garages that are detached
  • Removal of debris
  • Water heaters

Personal property insurance covers your own property. Personal property covers the following damages.

  • Electronic equipment, clothing, furniture
  • Detachable AC units
  • Curtains
  • Detached dishwashers and microwaves
  • Carpets that aren’t permanently attached
  • Washer and dryer
  • Deep freezers and food kept inside
  • Valuables up to $2500

Keep in mind that personal possession claims are based on what the item is worth at the time they’re destroyed. If you have something that’s priceless, it may not be covered. It’s best to keep receipts on the upper floor so you can prove your purchase.

Basements have Limited Coverage

Basements have Limited Coverage
It’s a great idea to get coverage for your basement because it’s the most likely to be flooded. Basements have limited coverage though, so if you’re getting it just for a flooded basement your insurance won’t cover the following damages.

  • Paneling
  • Bookcases
  • Tile, carpeting, floor coverings
  • Some drywall
  • Window treatments
  • Personal property

What the NFIP will Never Cover

If you have anything in a safe box, or if it belongs in a bank like bearer bonds, precious metals, stock certificates and cash it won’t be covered. Not only are the more expensive, but they’re difficult to prove. NFIP won’t cover the following damages.

  • Boat houses
  • Swimming pools
  • Fences
  • Decks
  • Septic systems
  • Plants and trees
  • Wells
  • Walkways
  • Patios
  • Hot tubs
  • Sewer backups
  • Retaining walls
  • Post-flood mold damage
  • Storm shelters
  • Cars
  • Loss of income
  • Temporary housing

The Fine Print

Water that severely damages your home could be covered by the NFIP depending on the circumstance. For example, you could be given up to $30,000 to move your home. Coving your home will cost around $600-$800 a year, but it depends on your deductible.

What Does Flood Insurance Cover? was last modified: by

Three Home Appliance Hacks to Save You Time

The joy of home-ownership can come to a crashing halt when appliances are not working. Trying to get through a day without a functional...

Best Cordless Drill Buying Tips: 5 Things to Know

It has become increasingly important for professional contractors to keep a functioning and powerful drill at hand. Not only contractors but normal people also...

8 Benefits of Appointing a Professional Commercial Roofing Contractor

As far as roofing is concerned, it is always best to hire a professional instead of attempting a DIY project. Roofing issues necessitate experience...

Top Gifts for the Outdoors Women in Your Life

Know someone who loves the outdoors? You’re in luck when it comes to birthdays and holidays. There are tons of gadgets, garments, and necessities...

Tips for Improving your Dubai Apartment

Regardless of how well-situated your Dubai apartment is, you might feel that there is something missing. Maybe the furniture doesn’t really catch the eye,...

How to Keep Home Renovation Budget on Track

Home renovations of any scale will take a mental, emotional, physical and financial toll on you. There's no doubt about it. The end result...
Single Cloud Template – Home Decor was last modified: by