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Flood Insurance-What does it really cover?

Let’s chat about this.

So, my wife was on Facebook and she came across a Go Fund Me Account. This person had a flood from the rain that happened in Oregon during a flash flood warning that was placed. The description stated that the persons insurance agent told them that flood insurance did not cover floods that were an “Act of God.” I do not know what it would cover then if this was the case. I do not know much more about this other than their insurance agent did not want to help them out here. So I decided to write this blog post to explain what flood insurance is. Hope this helps your understanding of what it is and why I believe everyone should have it.

Am I Required to Have Flood Insurance?

Homes and businesses in high-risk flood areas with mortgages are generally required to have flood insurance. If you are outside of the high-risk area you are not required to have flood insurance. Even if you are not in the high-risk area flooding can happen to anyone. Flooding can happen anywhere at any time. Poor drainage systems, summer storms, melting snow, neighborhood construction, and broken water mains can all result in flooding.

In fact, from 2014 to 2018, policyholders outside of high-risk flood areas filed over 40 percent of all National Flood Insurance Program (NFIP) flood insurance claims and required one-third of federal disaster assistance for flooding. No home is completely safe from potential flooding. When just one inch of water in a home can cost more than $25,000 in damage, flood insurance can be the difference between recovery and financial devastation.

What is considered a flood?

In simple terms, a flood is an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties. For example, damage caused by a sewer backup is covered if the backup is a direct result of flooding. If the sewer backup is not caused directly by flooding, the damage is not covered.

What does flood insurance cover?

There are two types of coverage Building and Contents coverage. Building coverage will cover the basic home stuff like electrical and plumbing to carpet and drywall. It also covers your appliances dishwashers, refrigerators, and stoves to your furnace and hot water heater. It will cover detached garages, fuel tanks and well water systems.

Contents coverage covers your personal belongings. Think of the thing you would pack if you were to sell your house and move out. Personal belongings such as clothing, furniture, and electronic equipment, washer and dryer, microwave oven.

Valuable items such as original artwork, furs, guns, comic books, basically any kind of collection (up to $2,500). If you have collections that are worth more than $2500 you need to schedule them this will include an appraisal. The coverage limits are $250,000 for the building and $100,000 for the contents they will be purchased separately and typically have a deductible.If you would like to look into flood insurance, get a quote, or just have questions please call me.

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