Understanding Different Types of Flood Insurance Coverage

Floods are among the most common and damaging natural disasters. Heavy rainfall, rapid snowmelt, and infrastructure issues can all lead to an abundance of water filling the streets and areas around your property, potentially leading to catastrophic losses. If even a small amount of water seeps into your home or business, the financial consequences could be devastating. Fortunately, you can prepare yourself for these difficult situations by understanding, acquiring and maintaining suitable flood insurance.

What Does Flood Insurance Cover?

Like many insurance products, flood policies can provide financial security and peace of mind and may make all the difference in your ability to endure the fiscal ramifications of floods. You can typically customize parts of your coverage to suit your unique needs, preferences and budget. In many cases, it may be advisable to ensure your flood policy includes the following coverages:

• Building property coverage—This part of a flood policy focuses on providing financial protection for the structural elements of insured buildings, such as homes and businesses. This means that you may be able to receive a payout to assist with repairing floors, foundations, walls, plumbing and electrical systems, and attached fixtures, such as bookshelves and cabinets.
• Personal property coverage—When your flood policy includes this feature, you may receive financial assistance for losses involving the contents of your home or business. Coverage could help pay for repairing or replacing electronics, furniture, clothing, appliances, and inventory.

Why Do I Need Flood Insurance Coverage?

Flood insurance is paramount for many property owners, as standard homeowners insurance and commercial property insurance policies often do not include coverage for such perils. As such, should floods cause a loss to your home or business, you must pay for them out of pocket. Additionally, flood insurance may be mandated if you have a government-backed mortgage and live in a high-risk area.

Where to Get Flood Insurance?

Flood coverage is often purchased through the Federal Emergency Management Agency’s National Flood Insurance Program. However, in recent years, many private insurers have also started to offer coverage. These various possibilities may prove useful, as additional options can provide more opportunities to customize coverage and ensure your policy is tailored to your unique circumstances.

We’re Here to Help

At the James V. Funaro Agency, we are well aware of the threat posed by floods and are committed to ensuring individuals, families and businesses are adequately covered. Visit our website or call one of our offices today to learn more about your flood insurance options or to compare quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.