Does my Homeowners Insurance Policy Cover Flood Damage?

Flood damage is not covered by a standard homeowners insurance policy. However, your insurance company can provide you with special insurance that will cover losses you incur based on flooding, The federal government guarantees the insurance policy. If you do not have an agent the insurance can be purchased directly from the National Flood Insurance Program . According to the Federal Emergency Management Agency (FEMA) about 20 percent of losses due to floods occur in areas that are considered low to moderate risk. Purchasing a flood policy for homes in these areas is modestly priced.

If you would like to find out your risk factor visit the NFIP website, if you think flood insurance is a luxury and not a necessity visit the NFIP flood simulator website and learn how much damage a small amount of water can do to your home.

Homeowners need to be aware that this insurance will cover the cost of rebuilding your home, but, your possessions are covered only for cash value, not replacement cost. This means that if you purchased a flat screen TV six years ago, the insurance company will pay you the cost of buying the TV minus seven years of depreciation. This has befuddled many folks who filed claims with the National Flood Insurance Program when they discover that they money they receive to settle their claim is not enough to replace their belongings.

There is a solution, it is known as excess flood insurance and it extends your coverage further than the NFIP policy does. You can extend coverage limits, opt to raise your personal protection from flood damage to provide replacement cost and choose other coverage options. To obtain this type of insurance it is best that you discuss your needs and coverage goals with your flood insurance agent.

Storms are becoming stronger and even low risk commercial property and residential properties can be severely damaged in areas that were once considered safe. Check with your insurance agent so that you know your property is protected and you will have peace of mind.

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