Flood Insurance

Flood Insurance Coverage

Flood insurance provides financial assistance to pay for damage caused by floods. Your homeowner’s insurance does not include coverage for flood-related damage. For insurance purposes, floods are defined as acts of nature. You need a separate policy to cover flood damage or you have to add a rider to your existing homeowner�s policy.

To qualify as a flood, the water must cover at least 2 acres of land. It must also affect at least one other property in addition to yours. And the flood must be caused by waters or unusual rapid flowing water from a source outside your home.

If you live in an area that is prone to floods, then you should consider this type of policy. You can also consider this coverage if you have a business in a flood-prone area.

Getting the Best Coverage

Home or business property is referred to as building coverage. Home coverage can insure property up to $250,000. For a business location the coverage maximum is usually $500,000.

You will need content coverage to insure your personal property. In most cases, personal belongings are covered at actual cost value. That means you get reimbursed for what the item is worth now, not what it was worth at time of purchase. Personal property coverage is up to $100,000 for residential and up to $500,000 for business property.

Flood insurance is a good investment for anyone who lives in a flood area. Speak with an insurance agent to get the coverage you need.