Flood Insurance

Most issues that arise from flood damage will not be covered under a regular insurance policy. Flood insurance provides an additional safety net for home and business owners in the event of a flood. This insurance will mainly protect the insured building, but it can also be purchased for the contents of the building as well.

Anyone that is worried about the potential for flood damage to their home or business can purchase flood insurance. Some home loan types also require this insurance if the home is located in a flood plain. This insurance functions the same as many other types of insurance. There are monthly payments that are either paid into escrow or directly to the insurance company, depending on your mortgage status.

Coverage is usually divided into a category for the building itself and a category for the contents contained in the building. The coverage limit for the building and its contents will vary depending on if the building is a home, business, or apartment complex. Businesses and apartment complexes will be able to be insured for more than a standard home.

The benefits of owning insurance for flooding can be huge. Flood damage can destroy the foundation of a building, its support beams, circuit breaker, and even the furnace and water heater. Damage to these objects can be catastrophic to the owner and could lead to great financial hardship if they need to be repaired or replaced. However if you own insurance that protects against floods then all of that damage is covered under even the most basic building policy. The contents portion of the insurance will cover most affected appliances and even the food in the refrigerator or freezer if it was damaged due to flooding. However it is very important to note that the contents coverage will not cover personal belongings that were stored in the basement, so it is advised to store personal belongings elsewhere if at all possible.