In the U.S., about 25% of all flood insurance claims come from supposedly low-risk flood zones.
Moreover, the standard homeowners insurance policy excludes flood damage not caused by a covered peril. For this reason, you should carry flood insurance, regardless of whether you live in a flood-prone zone or not. Flood damage doesn’t only occur because of the weather. For instance, a sewer backup can cause significant flood damage, but a standard home insurance policy typically excludes such damage. This is where a standalone flood insurance policy comes in handy.
What does flood insurance cover?
In general, flood insurance will cover any flood damage named in your policy. Some of the things that a standard flood insurance policy may cover include:
- Appliances such as dishwashers, refrigerators, portable air conditioners, washing machines and dryers
- Essential systems such as plumbing, electrical and HVAC systems
- Permanent installations and fixtures such as cabinets, wallboards and bookcases
- Personal belongings such as furniture, computers and clothes
- Certain valuables such as artwork
Take note that flood insurance only provides coverage up to the limit you carry.
Flood insurance exclusions
A standard flood insurance policy typically excludes the following items, hazards, and events:
- Earth movement
- Additional living expenses
- Loss of use
- High-value items such as currency and precious metals