Flood insurance is a special type of homeowner’s insurance designed to shield homeowners from the financial devastation of flood damage to their home. People commonly think that flood insurance covers all losses, but insurance coverage actually breaks down what is covered by the location of the damage. Damage to the structure of a home is not treated the same way as to damage in a basement or to belongings. Flood insurance spells out what is covered in each of these areas.
Flood insurance covers homes and other dwellings, including garages, against damage. This coverage includes dishwashers, furnaces, radiators, water heaters, plumbing fixtures, stoves, ovens, and refrigerators. The coverage also includes roofs, exterior and interior walls, flooring, ceilings, permanent cabinets and fixtures, electrical outlets, vents, light fixtures and ceiling fans. The coverage is for direct water damage, mold damage, and mudslides. The damage can be caused by river, lake, pond or stream flooding, or coastal floodings such as the storm surge that occurs during tropical storms and hurricanes.
National flood insurance covers basements to the extent that the losses are for items normally stored in a basement. This excludes coverage for furniture, TVs and other electronics that are not considered to be a part of a regular basement. The coverage also is for the actual structural elements of the basement. This includes unfinished walls, the foundation insulation, electrical junctions and circuit breaker boxes, central air units, fuel tanks, heat pumps, light fixtures, furnaces and water heaters. Coverage includes the cost of cleanup. Coverage excludes improvements such as flooring and finished walls.
Flood insurance covers items inside the home that are declared a loss, including clothing, furniture, bedding, decorative accessories, books, electronics, rugs, drapes, air conditioners, washing machines, clothes dryers, microwave ovens, photos, and paintings.
Flood insurance coverage for nonresidential buildings is similar to that for residential structures. Instead of providing full coverage for finished interiors, though, it mirrors the coverage provided for the interior of a basement. This means that structural coverage is only for unfinished drywall on walls and ceilings, and non-flammable insulation. Coverage does not extend to the paint on walls and ceilings. Flood loss coverage is also provided for Electrical junction and circuit breaker boxes, central air units, light fixtures, permanent cabinets, Foundation and cleanup costs. Coverage for contents includes furniture and fixtures, machinery and equipment, raw materials, and unfinished or finished goods.