Explaining Flood Insurance

MAKE IT SIMPLE- FLOOD INSURANCE

   Our next installment in the Make It Simple series is Flood Insurance. 

Consumers are rarely required to carry flood insurance unless they are in a high risk Flood Zone. If you are, your mortgage house will most likely require you carry a flood insurance policy. But you should talk to your agent and make sure you know if you should have a flood policy or not, regardless of which flood zone you are in. 

   Your flood policy has a Dec page, just like every other insurance policy. It will “declare” who you are, what property you have covered, the insurance limits you have chosen and how much you are paying.

   Flood Insurance is backed through the federal government under the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program regardless of who you buy the policy from. There are various levels of coverage and deductibles to choose from. You will have a separate deductible for the building and for the contents. Unlike Home and Auto insurance, Flood insurance only covers You. There is no “other party” liability in flood coverage.

Building Coverage: This covers physical damage to your home due to rising flood waters Keep in mind- two properties, or two acres, have to be flooded for flood insurance to pay out. This covers the building and its foundation, electrical and plumbing systems, a/c equipment, furnaces, walls, flooring… etc. The amount of building coverage should be based on your dwelling/replacement cost amount on your home insurance policy. Flood coverage cannot be higher than the home insurance amount. It caps at $250,000 for residential homes.

Contents Coverage: This covers physical damage to personal property such as clothing, furniture, electronics and certain valuable items, such as artwork (up to $2500). It will not cover currency or precious metals.

Deductibles: The Building and Contents coverage have a separate deductible. The higher the deductible, the lower the premium, but the more you will pay out of pocket in the case of a claim.  

*It is worth noting there is a standard 30 day wait period unless you are closing on a new home.  And Flood policies have to paid in full before coverage will begin. If your Mortgage does not require you have a flood policy, they will not let you include it in your escrow payment so you will need to make that payment in full directly. 

So that is Flood coverage. It is a simpler Dec page than home and auto with less coverage to understand. But please make sure you do understand what it will and will not cover and how much coverage you need to have. 

There are three ways to request a quote for your insurance needs: 

* Visit our website

* Email us

* Call Brockman Premier Insurance at 877-987-8683