Standard homeowners insurance covers interior water damage, due to for example a burst pipe. However, it does not typically cover destruction or damage caused by flooding. Property owners who live in an area prone to this type of natural disaster usually need to obtain special coverage.
Here is how flood insurance works: The policyholder pays an annual premium based on the property's flood risk and the deductible they choose. If the property or its contents are damaged or destroyed by flooding caused by an external event (rain, snow, storms, collapsed, or failed infrastructure), the insurer pays the amount of money needed to repair the damage or rebuild the structure, up to the policy limit.
In contrast to a standard homeowners policy, flood insurance requires a policyholder to purchase separate policies to protect the property and its contents.
What Flood Insurance Covers
Building coverage protects your:
- Electrical and plumbing systems
- Furnaces and water heaters
- Refrigerators, cooking stoves, and built-in appliances like dishwashers
- Permanently installed carpeting
- Permanently installed cabinets, paneling, and bookcases
- Window blinds
- Foundation walls, anchorage systems, and staircases.
- Detached garages
- Fuel tanks, well water tanks and pumps, and solar energy equipment
Contents Coverage protects your:
- Personal belongings such as clothing, furniture, and electronic equipment
- Curtains
- Washer and dryer
- Portable and window air conditioners
- Microwave oven
- Carpets not included in building coverage (e.g., carpet installed over wood floors)
- Valuable items such as original artwork and furs (up to $2,500)
What Flood Insurance doesn’t Cover
Flood insurance doesn’t cover damages caused by mold or moisture, earth movement, additional living expenses, belongings that are outside the insured building, currency, important documents (stock certificates).
Best Rates with Findalowrate
A few inches of water can cause thousands of dollars in damage and most homeowners insurance don’t cover flood damage. If you want to be on the safe side, get a free flood insurance quote now. It’s easy!
