What is Flood Insurance?
Flood insurance is an insurance policy. It pays cash when water enters a home from the outside, then damages property on the inside.
A flood insurance pays for:
- Repairs to the inside of a home that’s been damaged by flood waters
- Replacements for personal property inside a home that’s been damaged by flood waters
Insurance companies are specific about “what qualifies as a flood.”
In insurance terms, a flood is when two or more homes are damaged by water; and, where the water has come from any of the following: an overflowing natural body of water, a mud flow, or a heavy rain that overwhelmed the ground’s ability to handle natural water run-off.
Flood damage is specifically excluded from ordinary homeowners insurance and renters insurance policies. To file a legitimate claim, separate flood insurance coverage is required.
Flood insurance pays to fix electrical and plumbing systems in your home; to replace appliances and heating and cooling systems; to replace carpeting and hardwood flooring; and, to haul debris.
It also pays for damages to wardrobes, furniture, and electronics.
Floods cause more damage in the United States than any other weather-related event and all 50 states have experienced floods in recent years.
Depending on where you live, flood insurance can be cheap. It can be even cheaper when you bundle it with your other insurance coverages such as homeowners and auto insurance.
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