What Does Flood Insurance Not Cover?

Homeowners go to great lengths to ensure their homes are well protected, but what about protecting your property from the devasting effects of flooding? Flooding is the most expensive and common natural disaster in the country, costing homeowners thousands of dollars. Since homes are a major investment for most homeowners, it can be imperative to understand flood insurance.

Flood insurance provides coverage for a building and its contents. Homeowners’ insurance doesn’t cover damages caused by a flood, which is why those with a property susceptible to flooding may want to purchase flood insurance. In this post, we’ll take a look at what flood insurance doesn’t cover. But before this, let’s take a look at how flood insurance works.

How Does Flood Insurance Work?

The National Flood Insurance Program (NFIP) is mainly responsible for selling a flood insurance policy, though it can also be purchased from private insurers. Flood insurance rates are the same among private insurance companies. The NFIP allows homeowners to insure their house for up to $250,000 and personal property for about $100,000. However, if you rent, you can insure your belongings for up to $100,000.

As for non-residential properties, you can purchase up to $500,000 of insurance coverage for the structure and contents. A flood insurance policy comes with separate deductibles for your house and contents. So, you have the chance to select the deductible amount. However, those that have a mortgage may get rejected by their lenders to increase their deductible beyond specified limits.

What Does Flood Insurance Not Cover?

Like all insurance policies, there are certain things not covered by flood insurance. For a start, flood insurance only pays for damage when a naturally occurring flood affects at least two acres of land and at least two properties. This means flood insurance won’t cover situations where your house was flooded due to an overflowing bathtub. Your homeowner’s insurance may cover these problems, though. Even when you are in a flooding situation defined by the National Flood Insurance Program, the flood insurance policies still have gaps. For instance, it doesn’t provide coverage to any of the following items:

  • Personal belongings in your basement
  • Swimming pools
  • Patios
  • Decks
  • Landscaping
  • Currency
  • Valuable papers
  • Sewer backups

If you need to move into a rental apartment or hotel while your house is under repair after a flood, you will be responsible for the cost of the expenses. Cars and other forms of vehicles are also not included in flood insurance, but if you have comprehensive insurance on your auto insurance policy, you should be covered.

Get Help!

Have more questions about flood insurance policies? Contact Redwood Agency Group to talk to an experienced insurance professional to discuss what is and isn’t covered by your policy.