Flood Insurance

Depending on geographic location, floods can be a potential threat to residents and their homes and personal property. Flood insurance can protect against financial devastation caused by water damage to a dwelling or its contents.

Virtually everyone should consider acquiring this type of insurance regardless of geographic risk when residing in communities that actively participate in the National FLOOD INSURANCE PROGRAM (NFIP). In some high-risk areas, mortgage lenders may even require prospective homeowners to purchase this insurance.

Flooding is usually defined as any accumulation of water on two or more acres of normally dry land or at least two properties from an outside source, such as heavy rainfall, tropical storms or runoff of surface waters. When flooding occurs, a claim will need to be filed with the insurance company. An insurance adjuster will assess property damage to infer a potential settlement to compensate loss.

Types of Coverage

• Building coverage: Provides coverage for the building structure, certain appliances and items assumed to be part of the structure
• Contents coverage: Pays out the cash value of damaged contents as depreciated, used goods
• Replacement cost coverage: Pays out the cost of replacing damaged items with new items, usually available to owners of a single-family primary residence

Floodwater can cause costly damages with as little as an inch of water. Being covered will protect your home from suffering the complete loss of damaged property. Flooding can affect even low-risk areas, thus insurance can benefit those eligible to purchase a policy. This coverage does not just insure a building and some contents. It provides protection for something more valuable: someone’s home.