Flood Insurance Information

Flooding is not covered by your home insurance policy. This means that those seeking protection from this natural disaster are forced to look into flood insurance coverage. FEMA has specific guidelines when it comes to flood insurance coverage and it is important to go over the details of this with your insurance agent thoroughly.

If you are in a flood zone, you may be required to have a flood insurance policy. Even if you are not in a designated flood area, it is still smart to look into coverage because over 25% of all flooding related incidents take place outside of a flood zone. Flooding is one of the top natural disasters to plague citizens of the U.S. every year.

A flood insurance policy can provide relief by rebuilding your home and helping you replace your belongings that were lost by flood waters. It can also help your business should it fall victim to a storm or other incidents involving flooding.

Flood Insurance Protection

Flood insurance protects two types of insurable property: The first type covers the building; the second type covers your belongings; neither covers the land they occupy.

​

Building coverage may include:

• The insured building;

• The mechanical system;

• Built-in appliances &

• Permanently installed carpeting over unfinished flooring.

​

Contents coverage may include:

• Clothing;

• Furniture;

• Electronic equipment;

• Carpeting that is not already included in property coverage &

• Washers and dryers.

​

The two most common reimbursement methods for flood claims are: Replacement Cost Value (RCV) and Actual Cash Value (ACV). The RCV is the cost to replace damaged property. It is reimbursable to owners of single-family, primary residences insured to within 80% of the building’s replacement cost.

All other buildings and personal property are valued at ACV. The ACV is the RCV at the time of loss minus physical depreciation. Personal property is always valued using the ACV.

Requirements

When acquiring a flood insurance policy, it is required to have a 30 day wait period before the flood insurance take effect. This is to prevent people from taking out a policy at the last minute before a storm or hurricane hits. It is always important to be overly prepared when a flood strikes and you should make sure you are covered by looking into flood insurance before a disaster takes place.

Things you should know