Flood insurance protects your home against damage caused by a flood. This type of insurance is not included in a standard homeowners insurance policy, but it’s available as a separate policy from the ABC Dennis Insurance agency in Lutz, Florida.
Flood Damage vs. Water Damage
There’s a difference between flood damage and water damage. A flood is:
- A general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area or of 2 or more properties (at least 1 of which is the policyholder’s property) from:
- Overflow of inland or tidal waters
- Unusual and rapid accumulation or runoff of surface waters from any source
- Collapse or subsidence of land along the shore of a lake or a similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood.
Typical home insurance does not pay for flood damage; however, it may pay for certain types of water damage, depending on the cause.
Water damage, as defined by a standard home insurance policy, requires the damage to be sudden and internal, with the requirement that the water has never touched the outside ground. An example would be a burst water pipe or an accidental overflow of an appliance or bathroom fixture.
To cover losses to your home resulting from a flood, you must have flood insurance.
Why Do You Need Flood Insurance?
When a flood strikes, you need flood insurance. Even if you don’t live in a flood zone, it is important to know these basic flood facts:
- More than 20 percent of flood insurance claims are for properties outside of high-risk flood zones.
- You may be required to have flood insurance. Congress mandates that federally-regulated and insured lenders require flood insurance on mortgaged properties located in areas at high risk of flooding. Furthermore, some mortgage companies may require you to have flood insurance, even if your property is not in a high-risk flood area.
What Does Flood Insurance Cover?
Flood damage isn’t typically covered by homeowners insurance. To be covered for a flood, you may be able to buy a separate flood policy through the National Flood Insurance Program with help from your insurance agent. In some cases, you will need to purchase a private insurance policy, especially if you own a home over the maximum limit for the federal flood insurance program.
Coverage for the structure of a home typically protected by flood insurance includes:
- The insured building and its foundation.
- The electrical and plumbing systems.
- Furnaces, water heaters, heat pumps, and sump pumps.
- Refrigerators, cooking stoves and built-in appliances such as dishwashers.
- Permanently installed carpeting over an unfinished floor.
- Permanently installed paneling, wallboard, bookcases, and cabinets.
Contents inside a home typically protected by flood insurance include:
- Personal belongings (clothing, furniture, and electronic equipment).
- Portable and window air conditioners that are easily moved or relocated.
- Portable microwave ovens and portable dishwashers.
- Laundry washers and dryers.
- Food freezers and the food in them.
Related: National Flood Insurance Program Summary of Coverage
Types of Flood Insurance
There is government-sponsored flood insurance through the National Flood Insurance Program (NFIP), and there is private market flood insurance.
Homeowners can purchase a flood policy through NFIP for up to the NFIP Coverage Limits.
Flood insurance through NFIP is available in communities participating in the National Flood Program.
Additionally, anyone can purchase private market flood insurance.
Private market flood insurance policies, or separate excess flood insurance, are available. The private market policies have some advantages over government flood insurance that include:
- Higher coverage limits are available.
- Additional coverage options that are not available through the NFIP.
- No surveyor’s elevation certificate is required for certain flood zones.
- There may be no waiting period or a shorter waiting period for coverage to begin.
- Lower rates than the NFIP in many cases.
ABC Dennis Insurance Agency
ABC Dennis Insurance is an independent insurance agency established in 1997 that provides flood insurance to its customers.
Besides flood insurance, we can help with all your insurance needs. As an independent agency, we find the best insurance coverage with the most competitive rates. This is important because no insurance company can meet every insurance need. So, we shop multiple insurance carriers to find the coverage that best fits our customers’ every need.