In the event of a torrential rainstorm, or some other tragic event involving water, homeowners insurance won’t cover much of the damage. It may cover some of the rain damage. However, it won’t cover any damage that would result from flooding. You’ll need a separate policy for that. Even if you don’t live in a flood zone and your area has never experienced flooding, investing in flood insurance will definitely add that extra layer of protection for your home and belongings.
The National Flood Insurance Program (NFIP)
Most flood insurance is purchased from the NFIP. This is a federally regulated program with two policies to choose from. One policy covers your home, the other covers personal property. Under some circumstances, this type of insurance is a requirement rather than an option. If you live in a flood zone or high-risk area and have a mortgage, you may be required to carry this type of insurance. If you don’t live in a flood zone but still want to buy flood insurance you will need to make sure that you live in a community that participates in the national flood program. Oliver Insurance serves Canby, OR and is proud to help customers understand flood insurance and invest in a policy that will protect their home in the event of a flood.
Your Home
Flood insurance covers damage to the structure of your home as well as the permanent internal structures. It can also cover items that you’ve installed in your home as well. Flood insurance will comprehensively cover:
- Your home’s foundation
- Electrical and plumbing systems
- HVAC equipment
- Kitchen appliances
- Carpeting
- Trash removal
- Blinds
- Wallboard ( paneling, bookcases, and cabinets)
- Garages
Personal Belongings
Flood insurance can also place your personal belongings. Your furniture, electronic equipment, and clothing all fall into this category. Believe it or not, flood insurance will also replace any food that was lost as well. In addition, it may cover art and furs as well. However, it should be noted that flood insurance will compensate you for personal belongings based on their actual value, not what you paid for them.
What’s NOT Covered
Unfortunately, flood insurance won’t cover everything. For example, it won’t cover anything that belongs in the bank or in a safety deposit box like cash and jewelry. However, it may cover basements but the coverage is limited. Under most circumstances, cars, septic systems, decks, patios, and a loss of income. However, there are other items that may not be covered as well. It’s best to discuss what’s not covered before deciding on the type of flood insurance you need.
Flood insurance can be quite beneficial, particularly if you live in an area prone to flooding. However, it’s a good idea to be fully informed before you decide on the type of flood insurance that you want to purchase. Although you should become familiar with what’s covered, you also need to know what’s not covered. It’s important to choose a policy that will be best suited for your situation.
