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What Exactly Is Flood Insurance and What Does it Cover?

We all like to believe that nothing bad will ever happen to us. Natural disasters certainly won’t strike our little town, and if it does, we’ll just make it through. Unfortunately, this line of thinking isn’t always realistic. Floods can happen anywhere, whether you’re in a heavily populated area or a rural town. 


That’s why it’s important to understand flood insurance and the coverage that comes with it.


Who Needs Flood Insurance?

Anyone who lives in an area with a risk of flooding should consider getting insurance for floods. If you live in a high-risk area or are near water, chances are the government has already declared your area is prone to floods. 


The National Flood Insurance Program (NFIP) was developed by the federal government to help individuals and communities who live in these areas obtain affordable coverage against potential flooding. One of our Bethany experts can process your application for a policy.


What Does Flood Insurance Cover?

What exactly does insurance for floods help protect? There are essentially two forms of coverage; building property and personal contents coverage. Let’s go over a few of the basics of these two types of coverage:

Building Property Coverage

  • What it helps protect: This type of coverage helps cover the cost of repairs to your structure and/or foundation should it be damaged by flooding.
  • How does it pay out?: Typically, building property coverage comes in the form of a replacement cost basis. This means that the insurance company will cover the full cost of a replacement, even if it exceeds your policy limits.
  • Maximum coverage limit: $250,000

Personal Contents Coverage

  • What it helps protect: Personal contents coverage helps cover your belongings should they be damaged by water due to flooding.
  • How does it pay out?: Personal contents coverage typically pays out on an actual cash value basis. This means that the insurance company will only reimburse you for the depreciated value of your belongings at the time of the event.
  • Maximum coverage limit: $100,000

What Does Flood Insurance Not Cover?

Knowing what is not covered by insurance for floods is just as important as knowing what is. Let’s take a look at a few examples of the types of property and expenses that regularly fall outside the scope of basic insurance for flood policies:

  • Avoidable moisture or mildew damage
  • Living expenses during repair
  • Off-site property
  • Property located in a floodway

How Flood Insurance Can Bring You Peace of Mind

Having insurance for floods can provide you with peace of mind and financial security should your home be impacted by flooding. Generally speaking, if you live in an area that has been designated as having a high risk of floods, you have no other option but to get coverage. 


Even if you don’t live in this kind of area, it’s still worth considering obtaining insurance for floods as it offers invaluable protection against unexpected losses from natural disasters.


How Do You Purchase Flood Insurance?

That’s where Bethany Insurance comes in. We have the knowledge and experience to help you find the best plan for your needs. Whether it’s insurance for floods or any other type of coverage, we strive to provide our customers with the most comprehensive protection possible. 


Contact us today to learn more about flood insurance and how we can help protect your home and personal belongings from potential flooding disasters.