Many customers are surprised to learn their Homeowner’s Insurance policy doesn’t cover losses caused by Floods. Flood insurance is designed to provide an insurance for repairing damage to buildings and their contents caused by floods. It’s a coverage you don’t expect you’ll ever need, but did you know that floods are the leading natural cause for property damage losses?
Flood insurance policies are separated into four sections:
Coverage A – Building; also provides limited coverage for attached structures.
Coverage B – Personal Property; has limitations on property in the basement.
Coverage C – Other Coverage; costs incurred to protect the property from flood damage.
Coverage D – Increased Cost of Compliance; provides for the costs to comply with state and local regulations concerning repair and reconstruction of flood damaged properties. Liability under Coverage D is limited to $30,000.
A few things not covered by flood insurance:
- Flood policies do not cover personal property outside the enclosed building
- Open buildings used to house boats
- Buildings or personal property in perilous locations affected by high tide
- Loss resulting from earth movement, even if caused by flood