Contents coverage must be purchased separately.

*Mudflow is defined as 'A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water.' Three Important Facts About Your Flood PolicyĪ Standard Flood Insurance Policy is a single-peril (flood) policy that pays for direct physical damage to your insured property up to the replacement cost or Actual Cash Value (ACV) (See 'How Flood Damages Are Valued') of the actual damages or the policy limit of liability, whichever is less. Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.'.Unusual and rapid accumulation or runoff of surface waters from any source.Here is the official definition used by the National Flood Insurance Program.Ī flood is a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from: What is a Flood?įlood insurance covers direct physical loss caused by 'flood.' In simple terms, a flood is an excess of water on land that is normally dry. So now that you know what Flood Insurance covers, let's talk about FLOODS. Personal property is always valued using the ACV. The ACV is the RCV at the time of loss minus physical depreciation. It is reimbursable to owners of single-family, primary residences insured to within 80% of the building’s replacement cost.Īll other buildings and personal property (i.e. The RCV is the cost to replace damaged property. The two most common reimbursement methods for flood claims are : Replacement Cost Value (RCV) and Actual Cash Value (ACV). Carpeting that is not already included in property coverage.Clothing, furniture, and electronic equipment.Permanently installed carpeting over unfinished flooring.Refrigerators, cooking stoves, and built-in appliances such as dishwashers.

Central air conditioning equipment, furnaces, and water heaters.The insured building and its foundation.The first covers your building, the latter covers your possessions neither covers the land they occupy. Understanding Flood Coverage Building Versus Contents Coverageįlood insurance protects two types of insurable property: building and contents. These rates depend on many factors, which include the date and type of construction of your home, along with your building’s level of risk. Rates are set and do not differ from company to company or agent to agent. The NFIP, a federal program, offers flood insurance, which can be purchased through Fitts Insurance and other property and casualty insurance agents.

In order to qualify for flood insurance, a community must join the NFIP and agree to enforce sound floodplain management standards. The National Flood Insurance Program (NFIP) is administered by the Federal Emergency Management Agency (FEMA), which works closely with nearly 90 private insurance companies to offer flood insurance to property owners and renters. Participating communities agree to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flooding.

The NFIP offers flood insurance to homeowners, renters, and business owners if their community participates in the NFIP. In 1968, Congress created the National Flood Insurance Program (NFIP) to help provide a means for property owners to financially protect themselves. Since standard homeowners insurance doesn't cover flooding, it’s important to have protection from the floods associated with hurricanes, tropical storms, heavy rains and other conditions that impact the U.S.

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