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FLOOD INSURANCE

Flood Insurance Explained

Flood insurance provides financial protection for property owners against losses caused by flooding, which is typically not covered under standard homeowners or renters insurance policies. It covers structural damage to the building, including the foundation, electrical and plumbing systems, and built-in appliances. Additionally, contents coverage can be purchased to protect personal belongings like furniture, electronics, and clothing. Flood insurance is often provided through the National Flood Insurance Program (NFIP) or private insurers, and it is required for homes in high-risk flood zones with federally backed mortgages.

General Coverages

Pursuant to your particular policy language, coverage provisions, and exclusions; flood policies can include coverage for:

Building Property Coverage (Protects the structure of the home)

Covers repairs or replacement of the physical structure and essential systems, including:

  • Foundation, walls, and support structures
  • Electrical and plumbing systems
  • Central air conditioning, furnaces, and water heaters
  • Built-in appliances (e.g., refrigerators, stoves, dishwashers)
  • Permanently installed carpeting and flooring

Personal Property (Contents) Coverage (Protects personal belongings inside the home)

Covers personal items damaged by flooding, including:

  • Furniture, clothing, and electronics
  • Portable appliances (e.g., microwaves, washers, dryers)
  • Curtains, rugs, and valuables (e.g., artwork, jewelry – limited coverage)
  • Food and other household items

Claims Scenario

Sarah owns a home near a river and has an NFIP flood insurance policy with the following coverages:

  • Building Property Coverage: $250,000
  • Personal Property (Contents) Coverage: $100,000
  • Deductible: $1,500

After days of heavy rainfall, the river overflows and floods Sarah’s neighborhood. Two feet of water enters her home, causing significant damage to the walls, flooring, electrical system, and appliances. Her furniture, electronics, and clothing are also ruined.

Sarah documents the damage with photos and videos. She contacts her flood insurance provider to report the claim. She removes waterlogged belongings and begins drying out the home to prevent further damage.

How Flood Insurance Helps:

A flood adjuster is assigned to inspect the property and estimate repair costs. The building damage (walls, floors, electrical, appliances) is estimated at $80,000. The personal property damage (furniture, electronics, clothing) is estimated at $30,000.

Sarah pays her $1,500 deductible, and the insurance covers the remaining $108,500 ($78,500 for building and $30,000 for contents).

Contact CastleWise to discuss Flood insurance coverage.