What Does Flood Insurance Cover?

May 23, 2022

Nobody wants to imagine the possibility of their home flooding. However, it’s important to be prepared for such situations. Flood insurance can be a definite lifesaver should the unexpected happen to your family. It’s almost always better to have it and not need it than to worry if you’re covered during an emergency. So, just what does flood insurance cover exactly? Allow us to clear up any questions you may have. 

Does My Homeowners Insurance Cover Floods? 

Every homeowners insurance policy is different. That said, you can be fairly certain that your policy won’t cover flood damage, regardless of the source of the water. Whether a nearby river overflows or a storm causes rainfall to surge and seep into your home, you may be out of luck without designated flood insurance. Since most homeowners policies won’t cover such damage, you may want to consider adding a flood insurance policy. 

What Does Flood Insurance Cover? 

Flood insurance basically covers what homeowners insurance covers, but in the event of a flood. These are typically covered at replacement cost. This means the policy will pay out the actual cash value of repairing or replacing damage caused by flood waters.  

Flood insurance generally covers damage to the physical structure of your home including things like its foundation, walls, plumbing, electrical, and a detached garage. It will often cover furnaces, water heaters, refrigerators, stoves, carpeting, window blinds, fuel tanks, well water tanks, and solar equipment. 

Additionally, flood insurance typically has personal contents coverage. This insures things like electronics, clothing, and other personal items up to a specified maximum limit. The policy will generally pay out the cash value of replacement items. 

Flood insurance rarely covers loss of currency, precious metals, and outdoor property such as landscaping, decks and patios, fences, and swimming pools. It may not cover personal property stored in basements, or cars and their spare parts. 

Do I Need Flood Insurance? 

We get this question fairly often. After all, a flood may seem like an unlikely occurrence, even in remote parts of the Midwest. The reality is that you may need to have flood insurance for one reason or another. For example, if you own a home in a high flood-risk area, your lender may require that you purchase a policy. 

However, even if you aren’t in a high-risk area, it’s still important to consider flood insurance. Information from the Federal Emergency Management Agency, which oversees the National Flood Insurance Program, notes that one-fifth of the flood insurance claims they receive come from low-risk or medium-risk areas.  

Thus, floods can occur even in areas where they aren’t typical. In the last 5 years alone, all fifty states experienced some form of flooding. In fact, Nebraska saw major flooding as recently as 2019. Whether you need flood insurance or not ultimately comes down to your personal tolerance for risk. Just remember the potential cost of recovering without it.  

In our opinion, it’s always better to be safe than sorry. Flash floods can appear out of nowhere, and by the time storm breaks, the damage may already be done. We recommend purchasing a flood insurance policy even if you are at low risk. It will give you greater peace of mind throughout the year, regardless of your exact location. 

Final Thoughts 

Flooding is no joke, and every state is at risk from this severe hazard. Any Midwest native knows just how unpredictable weather patterns are. Heavy rains and rapid snowmelt can quickly cause ground to saturate, rivers to overflow, and storm drains to back up. If you’re thinking about a flood insurance policy or have questions about what it covers, we hope you’ll reach out today. We’re eager to connect you with our closest FUMA agent who can walk you through the details.