Home Insurance and Flooding
Flood damage is not covered by standard homeowners insurance. Such coverage is available in a separate policy offered by some private insurers and also the National Flood Insurance Program - NFIP.
An NFIP policy provides up to $250,000 replacement cost coverage for the structure which pays to rebuild the property as it was before the damage. It also covers $100,000 for the actual cash value of personal possessions meaning the cost coverage minus depreciation. Coverage of furniture and other items stored in the basement may also be limited.
Flooding can occur in inland areas away from major rivers as well as designated flood zones. Home insurance against flood damage is available for both homeowners and renters. It is worth buying a flood insurance policy to protect your home against melting snow, an overflowing creek or snow, or water running down a hill. There is a 30-day waiting period before coverage begins so don’t wait for flood season to arrive before taking out a policy.
For those who need more protection than the NFIP offers or those whose community does not participate in the NFIP, excess flood insurance is available from some private insurers. Such a policy will cover damage over and above the coverage offered by the federal program.
Excess insurance against flooding is available in high risk flood zones and areas of lower risk. It can be purchased through independent insurance agents on behalf of specialized companies or from regular home insurance companies who provide coverage to their policy holders through an arrangement with a specialized insurer.
Contact your insurance agent to discover if private primary flood insurance is available in your local area.
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