What Flood Insurance Covers?

🤔 What is Flood Insurance?

Flood insurance is a special type of insurance coverage that protects property owners from financial losses related to flood damage. Floods can happen anywhere and even one inch of floodwater can cause up to $25,000 in damage. Flood insurance is separate from a homeowners insurance policy, which typically does not cover flood ​1​.

🏢 Who Provides Flood Insurance?

The National Flood Insurance Program (NFIP), managed by the Federal Emergency Management Agency (FEMA), provides flood insurance to property owners, renters, and businesses. Flood insurance is available to anyone living in one of the 23,000 participating NFIP communities. The NFIP works with communities required to adopt and enforce floodplain management regulations that help mitigate flooding effects. They partner with more than 50 insurance companies and the NFIP Direct to deliver flood insurance​2​​ 3.

What Does Flood Insurance Cover?

Flood insurance offers two types of coverage: building coverage and contents coverage.

  • Building coverage protects the structure of your home and items such as: electrical and plumbing systems, furnaces, water heaters, refrigerators, cooking stoves, built-in appliances like dishwashers, permanently installed carpeting and cabinets, window blinds, foundation walls, anchorage systems, staircases, detached garages, fuel tanks, well water tanks and pumps, and solar energy ​4​.
  • Contents coverage protects your personal belongings, including clothing, furniture, electronic equipment, curtains, washer and dryer, portable and window air conditioners, microwave oven, carpets not included in building coverage, and valuable items such as original artwork ​5​.

⛔ What Does Flood Insurance Not Cover?

Flood insurance only covers losses directly caused by flooding. For instance, damage caused by a sewer backup is covered if the backup is a direct result of flooding. However, the coverage does not extend to:

  • Temporary housing and additional living expenses incurred while the building is being repaired or is unable to be occupied.
  • Property outside of an insured building like landscaping, wells, septic systems, decks, patios, fences, seawalls, hot tubs, and swimming pools.
  • Financial losses caused by business interruption.
  • Currency, precious metals, stock certificates, and other valuable papers.
  • Cars and most self-propelled vehicles, including their parts​6​.
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