One of the most important overlooked form of insurance for homeowners is Flood Insurance. Flood damage is not covered on a typical homeowners insurance policy. Although sometimes FEMA (the Federal Emergency Management Agency) provides help for victims of flood damage, it does not provide coverage for personal property, and is often defined as a loan and must be repaid.

Flood Insurance for Homeowners: What Does it Cover?

Depending on the type of flood insurance you carry, it covers various things. The basic coverage on a flood insurance policy covers the structure of the home, which would  also  include permanently installed fixtures, finishes, and systems.  This would typically include your electrical system, plumbing, heater, water heater, built-in appliances,  flooring, and permanently installed cabinets, bookcases, and fixtures.

You can also add additional flood insurance to cover the contents of your home, that would include your clothes, electronics, furnishings, and other personal belongings.

Is Flood Insurance for Homeowners Included in Standard Homeowners Policy?

Some types of water damage may be covered by your home insurance policy, but generally speaking, damage caused by rainfall, rising water, or runoff will not be covered. For example, if your bathroom pipes burst and flood your bathroom and bedroom, your home insurance would typically cover the repair or replacement of your damaged floors, walls, and your personal property. However, a standard homeowner’s policy does not cover actual flooding from rising water caused by a source outside of the home. This is where flood insurance would take effect.

Do I Have to Obtain Flood Insurance?

Depending on who holds your mortgage and whether FEMA’s flood map indicates you’re in a flood zone, you may be required to carry a certain amount of flood insurance for the property.  Other times, flood insurance is considered an optional coverage. Keep in mind that being told by your lender that it isn’t necessary to buy flood insurance isn’t a guarantee a flood will not happen and t is important to remember that regular home insurance won’t replace your personal property or repair your home if your property is damaged by a flood.

What Does Flood Insurance Cost to Protect Your Personal Property?

Flood insurance costs are determined by several factors, including whether your home is in a high-risk flood zone (or in any flood zone at all), the type of flood insurance you want to purchase, the deductible you choose, the amount of coverage you choose, where your home is is located, the age or design of your home, and the location of it. The elevation of the property may also be a factor for properties located in or near flood zones. To get a better idea of the coverage needed as well as deductible that is right for you, speak to a trusted professional agent.