Does Home Insurance cover flooding?
Flood coverage is not included in standard homeowner's insurance policies,
but you can purchase additional insurance to cover flooding. This flood
insurance, even though sold to you through your home insurance company is
actually through the Federal Flood Insurance Program (1-888-379-9531,
www.floodsmart.gov).
If you live in a specified flood zone you will have to have flood insurance. If
your house could possibly be flooded by melted snow, overflowing creek, river,
pond or any possibility at all of flooding, you need to buy the special flood
insurance. Be sure to get your flood insurance way before the threat of floods
because most policies have a 30-day waiting period before they go into effect.
This flood coverage will cover the cost of structure damage but it will only pay
for the actual cost of the contents minus the depreciation of them. Also if you
have furniture and belongings stored in your basement, they may have a limit on
the amount they will reimburse you for them.
There is only a specified amount of flood insurance offered by the Federal Flood
Insurance Program so if you think you will need more than they specify then you
will need to get an "excess" flood insurance policy from a specialty insurance
company. This "excess" flood insurance will cover the damage above the limit of
the regular flood insurance. You can purchase this "excess" flood insurance
through many homeowners insurance agents if they have arrangements with the
specialized insurance companies to offer this extra insurance for flooding to
their policyholders.