Flood Insurance

Flood - Types of Policies

Different types of policies are available based on your property’s location and flood history: Standard Flood Insurance Policies: If you live in a community that participates in the National Flood Insurance Program (NFIP), your building and its contents can be covered. You must apply for building coverage and contents coverage separately.

Preferred Risk Policies: If your home or business is in a low or moderate risk zone, your building may qualify for a low-cost Preferred Risk Policy . Premiums for both building and contents start at just under $119.

Flood - Coverage Defined

Flood insurance is purchased separately from the National Flood Insurance Program (NFIP) through local agents, agencies, and insurance companies.

A flood generally is excluded under a homeowner's policy . Flood as defined by the NFIP as a general and temporary condition of partial or complete inundation of normally dry land areas from:

  1. overflow of inland or tidal waters,
  2. the unusual and rapid accumulation or runoff of surface waters from any source,
  3. Mud slides, (i.e. mud flows) which are proximately caused by flood, as defined above, and are akin to a river of liquid and flowing mud on the surface of normally dry land areas, as when earth is carried by a current of water and deposited along the path of the current, and
  4. the collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by waves or currents of water exceeding the cyclical levels which result in flood, as defined above.

PLEASE NOTE: Flooding must cover at least 2 acres of land OR flood the neighbor to the left and the neighbor to the right. Flooding just one property is not considered to be a covered flood under a NFIP policy.

Flood - Coverage Limits Available

Flood coverage limits for a standard flood policy are:

  • Coverage Type Coverage Limit
  • One to four-family structure $250,000
  • One to four-family home contents $100,000
  • Other residential structures $250,000
  • Other residential contents $100.000
  • Business structure $500,000
  • Business contents $500,000
  • Renter contents $100,000

Flood - Waiting Period for Coverage

Regardless of the type of flood policy you purchase, there is a standard 30-day waiting period , from the date of purchase, before a new flood policy goes into effect.

The 30-day waiting period does notapply if:

  • The initial purchase of flood insurance occurs in connection with the making, increasing, extension, or renewal of a loan in a high-risk zone by a regulated lender; or
  • The initial purchase of flood insurance occurs within one year of a map change.

Flood - Deductibles

The minimum deductible in a flood policy is $500, and applies separately to the building and to the contents portions of your claim. Deductibles of $1000, $2000, $3000, $4000 or $5000 are optional. Check your policy or contact your agent to determine what deductibles apply.

Flood - Building Coverage

The following is insured under Building Property coverage :

  • The insured building and its foundation
  • The electrical and plumbing systems
  • Central air conditioning equipment, furnaces, and water heaters
  • Refrigerators, cooking stoves, and built-in appliances such as dishwashers
  • Permanently installed carpeting over an unfinished floor
  • Permanently installed paneling, wallboard, bookcases, and cabinets
  • Window blinds
  • Detached garages (up to 10 percent of Building Property Coverage).Detached buildings (other than garages) require a separate Building Property policy
  • Debris removal
  • Flood - Personal Property Coverage

The following is insured under Personal Property Coverage:

  • Personal belongings such as clothing, furniture, and electronic equipment
  • Curtains
  • Portable and window air conditioners
  • Portable microwave ovens and portable dishwashers
  • Carpets not included in building coverage
  • Clothes washers and the food in them
  • Certain valuable items such as original artwork and furs (up to $2,500)
  • Flood - Limits on Some Personal Property

Coverage for some personal property has special limits. They are as follows:

The policy will pay no more than $2,500 (aggregate amount) for any one loss to one or more of the following kinds of personal property:

a. Artwork, photographs, collectibles, or memorabilia, including but not limited to, porcelain or other figures, and sports cards;
b. Rare books or autographed items;
c. Jewelry, watches, precious and semiprecious stones, or articles of gold, silver, or platinum;
d. Furs or any article containing fur which represents its principal value;
e. Personal property used in any business.

Also, they will pay only for the functional value of antiques.

Flood - Excluded / Type of Loss

Flood insurance doesn't cover all losses.

Types of losses not covered are:

  1. Sewer backup or seepage of water, unless property has been damaged by flood at the same time;
  2. Water or moisture damage resulting primarily from any condition substantially confined to the insured building;
  3. Losses caused by the insured's failure to use reasonable means to preserve the property after a flood (i.e. "failure to mitigate the loss");
  4. A loss which is already in progress when the policy becomes effective;
  5. A loss caused by off-premises power failure;
  6. There is no Additional Living Expense (ALE) coverage in a flood policy; and
  7. Flood policies do not cover above or in-ground pools;
  8. Financial losses caused by business interruption or loss of use of insured property;
  9. Most self-propelled vehicles such as cars (including their parts).

Flood - Excluded / Items

Not all flood policies provide total coverage . Some items not covered under a flood policy are:

  1. Paperwork, such as account statements, bills, deeds, evidence of debt, money, coins, postage stamps, manuscripts, stock, certificates, precious metals, etc.;
  2. Fences, piers, seawalls, outdoor swimming pools, hot tubs, wells, septic systems, bulkheads, wharves, bridges, docks, boat houses which are on or over the water;
  3. Reduction of land values, lawns, trees, shrubs, plants, growing crops, livestock, walks, decks, patios, driveways, paved surfaces, outside building foundation walls;
  4. Animals, birds, fish, aircraft, motor vehicle (with exceptions), watercraft;
  5. There are various other limitations concerning enclosures, contents, machinery, building components, equipment and fixtures; and
  6. Expenses required to bring the property current with building codes and laws (Ordinance or Law coverage).

Flood - Condo Unit Owner Limitation on Additions or Alterations

Condominium unit owner flood policies have limitations in the contents coverage. The policy allows up to 10% of the amount of contents carried by the unit owner to be applied to additions and alterations, but not as an additional amount of insurance.

Flood - Tenant's Limitation on Improvements & Betterments

A Tenant flood policy limits the improvements and betterments up to 10% of the amount of contents coverage applied to damage to the improvements, alterations, additions and betterments you've made.