WorldExecutivesDigest.com | What Does Flood Insurance Cover? A Simple Guide | Are you wondering what does flood insurance cover exactly? If yes, you need to check out our helpful guide by clicking right here.
Did you know that over 14 million properties are at immediate risk of flooding? This is a lot of homes that are at high risk of dealing with the catastrophic aftermath of a flood. Are you wondering what does flood insurance cover exactly?
Keep reading to learn the ins and outs of flood insurance coverage.
What Does Flood Insurance Cover?
When you purchase flood insurance for your home, you are more than likely buying it from the National Flood Insurance Program (NFIP). This is a program that is federally regulated.
There are two different coverage options. You have the option of buying one or both:
If you want to cover your personal property, which is the items in your home such as your furniture you can choose this option. This will cover up to $100,000 in personal property like the food inside your refrigerator or freezer if it goes bad, curtains, electronics, clothing, etc.
You will be paid out based on the actual cash value basis of the items with depreciation in mind.
If you want to cover your actual home then this is the option you want to choose. It will cover up to $250,000 in damages caused by any flooding. For example, they will cover your home and its foundation along with your electrical and plumbing systems.
Building property coverage will also cover your kitchen appliances and your HVAC equipment such as water heaters, furnaces, and air conditioners. Debris removal, detached garages, and window blinds are also covered under the building property option.
Usually, you will be paid out based on what it would take to repair the home per the market value. Learning how to find the BFE of your home will come in handy.
What Is Not Covered?
There are a few things that will not be covered by flood insurance. Something that is never covered is currency, stock certificates, and precious metals. Any outdoor property like fences, patios, wells, septic systems, hot tubs, pools, and decks are not covered either.
If the insurance company feels that any moisture or mildew that could have been avoided by the homeowner they will not cover that either. Any living expenses for temporary housing, while the home is under repair after a flood, will not be covered.
Your vehicles will not be covered either. Make sure that you double-check your car insurance to see if you have any type of flood coverage if you live in a flood-prone area.
Feeling Like a Flood Insurance Pro?
Now that you know more about what does flood insurance cover you can decide which coverage option to choose. You can buy your policy through a local insurance agent in your area as a homeowner or as a renter. Don’t forget to keep tabs on the weather to help you prepare as much as possible before a storm.
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