Types of Flood Insurance
How much flood insurance coverage is available?
Flood coverage limits for a standard flood policy are:
|
Coverage Type |
Coverage Limit |
| One- to Four-family structure |
$250,000 |
| One- to Four-family home contents |
$100,000 |
| Other residential structures |
$250,000 |
| Other residential contents |
$100,000 |
| Business structure |
$500,000 |
| Business contents |
$500,000 |
| Renter contents |
$100,000 |
What is the Preferred Risk Policy (PRP)?
The
Preferred Risk Policy offers multiple coverage combinations for both
buildings and contents (or contents-only, for renters) that are located in low-
to moderate-risk areas (B, C and X Zones). Preferred Risk Policies are
available for residential or non-residential buildings also located in these
zones that meet eligibility requirements based on the building's entire flood
loss history.
What is covered in my basement?
Flood insurance covers your home's foundation elements and equipment that's
necessary to support the structure (for example: furnace, water heaters,
circuit breakers, etc.).
It's important to note that some items in your basement are covered under
building coverage (like a furnace, hot water heater and circuit breaker), and
others are covered under contents coverage that must be purchased in addition
to building coverage (for example, your washer and dryer, or your freezer and
the food in it).
The NFIP encourages people to purchase both building and contents coverage for
the most complete protection. Flood insurance does not cover basement
improvements, such as finished walls, floors, ceilings or personal belongings
that may be kept in a basement. For a complete list of what's covered,
view the Standard Flood Insurance Policy (SFIP) Forms.
Are losses from land subsidence, sewer backup or water seepage covered?
Losses from land subsidence (a gradual or sudden sinking of land) are covered
if the damage is a direct result of flooding. You're covered if your property
is near a lake or similar body of water, and waves or currents from the lake
cause your property's land to sink.
Damage caused by sewer or drain backup, or overflows from a sump pump or
related equipment are covered if the event is a direct result of flooding.
Seepage or leaks in your home are not covered.
Does the NFIP cover flood damage caused by hurricanes, rivers or tidal
waters?
Yes, providing that at least two adjacent properties in the area (or two acres)
are flooded.
Is flood damage from wind-driven rain covered?
No. When rain enters through a wind-damaged window or door, or comes through a
hole in a wall or roof, the NFIP considers the resulting puddles and damage to
be windstorm-related, not flood-related.
Flood insurance covers devastation caused by storm surge, wave wash, tidal
waves or the overflow of any body of water over normally dry land areas.
Although flood insurance specifically excludes wind and hail damage, the good
news is that most homeowners insurance provide such coverage.
What is Increased Cost of Compliance (ICC) coverage?
If a flood damages your property, you may be required by law to bring your home
up to community and/or state safety standards. If you have NFIP insurance, and
your home has been declared substantially damaged by your community, ICC
coverage is provided to cover up to $30,000 of the cost to elevate, flood
proof, demolish or relocate your property. ICC coverage is in addition to the
coverage you receive to repair flood damages; however, the total payout on a
policy may not exceed $250,000 for residential buildings and $500,000 for
non-residential buildings.