What is covered by Flood Insurance?

Many home and business owners don’t know what is covered under flood insurance, and if it is really worth spending the money on. The truth is; flood insurance will save you a lot of time and money in the long run, especially if you live in a high-risk area that is prone to flooding on an annual basis.

So what is generally covered by Flood Insurance?

Direct physical damage to your building or to its contents by, or from a flood is covered by your flood insurance policy. An example would be a plumbing issue. If this issue was caused directly by the overwhelming amount of water from a flood, it would be covered. If your toilet overflows and there is no flooding present in your home due to a natural disaster, then it will not be covered.

To learn more about Flood Insurance and how to go about implementing a policy for your property, check out what is covered for your specific plan here.

Here is what IS insured under the building property coverage for flood insurance: the insured building and its foundation, electrical and plumbing systems, water heaters, central air conditioning equipment, furnaces, permanently installed carpeting and paneling (including wallboard, unfinished flooring, cabinets, and bookcases), machinery, canopies, walk-in freezers, outdoor antennas and other aerials attached to the structure, and fire extinguishing equipment and fire sprinkler systems.

Purchasing Personal Property Coverage is also a smart idea, as many items can be destroyed during a flood in your home or business. Generally speaking, here is what is covered for personal property: machinery and equipment, furniture and fixtures such as chandeliers, other personal property owned by you and used at your business, merchandise held in storage, portable and window air conditioners, microwave ovens and dishwashers, carpeting or rugs not included in the building coverage, clothes washers and dryers food freezers (other than walk ins) and the food included in them, certain valuable items such as artwork and furs,  and non licensed and self-propelled vehicles if stored inside the insured building and used to service the location.

Many things are covered under the personal property and building property coverage, but here is what is not covered under either policy: Damage caused by mold or mildew that could have been avoided, damage caused by a sewer backup unless it was caused directly by the flood, currency, precious metals, and valuable papers such as recorded data, script, or stock certificates, property and belongings outside of the building or in another structure (trees, plants, septic systems, walkways, decks, patios, hot tubs, swimming pools) , financial losses caused by business interruption or loss of insured property, and most vehicles such as cars and their parts.


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