2. 1. What is flood insurance?
2. Why buy flood insurance?
3. What are common causes of flooding?
4. Does flood insurance cover all floods?
5. What’s covered?
6. What’s not covered?
7. How is my claim calculated?
8. Can I buy additional coverage?
9. How much does it cost?
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3. FAQ 1
What Is Flood Insurance?
Flood insurance covers losses to your property when it is affected by
“excess water” on property that is normally dry.
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4. FAQ 2
Why Buy Flood Insurance?
It’s required if your property is in a high-risk zone and you have a home
loan from a federally regulated lender. Your lender may also require you
to get flood insurance if they tell you your property has been re-zoned as
a high-risk zone. Some estimates say that 25% of flood insurance claims
are filed from medium and low-risk zones, so you may still want coverage
even if your flood risk is minimal.
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5. FAQ 3
What Are Common Causes Of Flooding?
• Overflow of inland waters
• Rise in tides
• Unusual and Rapid accumulation or runoff of surface water from
any source
• Mudflow (earth carried by water currents)
• Land Collapse along lake shores or other bodies of water that is
caused by erosion, waves or currents resulting from non-cyclical
flood waters
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6. FAQ 4
Does flood insurance cover all floods?
To be covered, the flood must be a temporary condition, and cover
two or more acres or two or more properties.
The National Flood Insurance Program (NFIP) offers coverage in
approximately 20,000 communities in the U.S. You can determine if your
property is eligible for flood insurance by checking the NFIP Community
Status Book. Three policies are available, depending on the type of
structure you want to insure:
• Dwelling policy: covers most residential homes
• General property policy: covers apartments and businesses
• Residential Condominium Building Association policy: covers
condominiums
Basic flood insurance policies cover structures only. If you want to insure
your personal belongings against flood damage, you must buy separate
coverage.
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7. FAQ 5
What’s Covered?
If your property is damaged by a type of flood listed in your policy, your flood
insurance will cover:
• The Building and its Foundation
• Electrical and Plumbing Systems
• Central Air Conditioning, Furnaces, Water Heaters
• Refrigerators, Stoves, Dishwashers
• Permanent Carpeting that has been installed over Unfinished Floors
• Permanently Installed Paneling, Wallboard, Bookcases and Cabinets
• Window Blinds
• Detached Garages (up to 10% of coverage)
• Debris Removal
If you buy additional coverage for your personal belongings, these items will be
covered:
• Clothing
• Furniture
• Electronic Equipment
• Portable and Window Air Conditioners
• Portable Microwave Ovens and Dishwashers
• Carpets that are not included in building coverage
• Washers and Dryers
• Freezers and the food they contain
• Certain Valuables, such as artwork and furs
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8. FAQ 6
What’s Not Covered?
Flood insurance policies cover only specific types of flooding. These policies also
exclude coverage on some belongings and property features.
Common items not covered:
• Damage caused by wind-driven rain
• Damage caused by moisture, mildew or mold that the property owner
Could Have Prevented
• Currency, precious metals, stock certificates, and other precious papers
• Vehicles and their parts
• Outside belongings, such as wells, septic
systems, walks, decks, patios, fences, hot tubs, swimming pools, seawalls
• Temporary housing and living expenses
• Financial loss due to business interruption
• Financial loss due to loss of use of insured property
Flood insurance also limits coverage on damages to basements, crawlspaces, and
other enclosed areas under elevated buildings. If you have a basement, full-story
foundation walls, or any type of enclosure below the lowest elevated floor in your
home, ask your agent about these limits.
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9. FAQ 7
How Is My Claim Calculated?
Insurance agents calculate the payout for damages & belongings based
on actual cash value and replacement value.
Carpeting and all personal belongings are always valued at actual cash
value. (Actual cash value is the value of an item minus depreciation.)
The cost to repair or replace covered dwellings, on the other hand, is
calculated using the replacement value method. This method does not
subtract a depreciation amount.
However, the building must be a single-family dwelling, you must live in
the building at least 80% of the year, and your coverage must be at least
80% of the full replacement cost of the building, or it must be the
maximum coverage available under the National Flood Insurance
Program (NFIP) before receiving replacement cost value on a flood claim.
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10. FAQ 8
Can I Buy Additional Coverage?
If you want to buy more coverage than is offered through the National
Flood Insurance Program (NFIP), ask your insurance agent about Excess
Flood Protection.
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11. FAQ 9
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How Much Does It Cost?
The amount you pay depends on your property’s flood risk, whether you
are insuring a residence or a business, and the deductible you choose.
Insuring your personal belongings against flood damage also adds to
your policy cost.
You can get an idea of the cost by estimating your premiums
online, contacting your insurance agent for specific costs, or finding an
agent in your area.
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