Options for Flood Damage Insurance

Many people do not realize that your homeowner's insurance does not cover damage that is caused by a flood. If you live in an area that is at risk for a flood, it is a good idea to carry flood insurance. This type of insurance can also be purchased to protect commercial properties and rental properties.

Damage done to a home or business by flood waters can be catastrophic as well as very expensive to repair. Without flood insurance, most people would have a hard time paying for repairs to the building structure as well as replacing all of the items that were damaged. There are several different insurance options available to protect your home or business.

Building flood insurance will pay for damage to the structure of a building as well as above ground appliances and other items that the policy defines as being part of the building. These items include refrigerators, HVAC units, hot water heaters, built in microwaves and dishwashers, and carpet that is covering unfinished flooring. A content flood insurance policy, which may or may not be separate from building coverage, will pay for personal property located inside of a flood damaged building. This property includes clothing, furniture, portable appliances and washers and dryers.

Flood insurance does have monetary limits. With building coverage, a residence can be insured up to $250,000 and non-residential buildings can be insured up to $500,000. The contents of a home can be insured up to $100,000. Flood insurance is not expensive to purchase. The average cost of flood insurance is $100 to $400 per year, depending on the area where you live and how at risk the building is for a flood.