Flood Insurance provide protection for a structure and its contents from water damage caused by a flood. A flood is defined as a temporary condition where two or more acres of normally dry land are inundated by water or mudflow. Floodwater can be large or small but the damage can be significant in either instance.

Many mistakenly believe that since they have a homeowners policy that they are protected from flooding. Standard homeowners insurance doesn’t cover flood damage at all. While it will cover damage from rain, it will not cover flooding from rising bodies of water.

In order to be protected, a separate flood insurance policy is needed. The most common flood insurance is offered through the federally regulated program known as the National Flood Insurance Program (NFIP).

There are two policies. One policy covers your actual home up to $250,000 while the other policy covers your personal property up to $100,000.

If you’re taking out a mortgage on a property that is in a high-risk flood zone, your lender may require you to buy a policy in order to get the loan.

Building Property Coverage helps protect the physical structure of your home and its foundation, plumbing, electrical, heat and air conditioning, cabinets, etc. Unless you have an excess flood insurance policy, the maximum coverage limit is $250,000.

Personal Contents Coverage protects your own personal items such as clothing, furniture, electronics, some portable appliances, etc. Unless you have an excess flood insurance policy, the maximum coverage is the actual cash value un tp $100,000.

Basic flood insurance does not cover moisture or mildew damage that could have been prevented by the homeowner. It does not cover currency, precious metals, or other paper valuables like stock certificates. Basic flood insurance does not cover patios, decks, fences, landscaping, wells or septic systems. It also does not cover hot tubs or pools.

Living expenses are also excluded from coverage with a basic flood insurance policy along with cars or other self-propelled vehicles.