Types Of Flood Insurance

If you live in an area that has been designated as a flood zone, then flood insurance for the home might be beneficial. Some states will offer disaster assistance to residents after a flood, but it usually doesn’t cover everything that insurance would cover. You will likely get the basic items replaced instead of the personal possessions that insurance might replace that have a higher value. You can look at a Flood Insurance Rate Map online or at a county office to try to determine the likelihood of a flood and if insurance is even offered in your area.

There are two types of flood insurance. One is national insurance, and the other is private. While national insurance is sometimes a requirement for some areas, private insurance typically offers more coverage. However, it is sometimes more expensive as the items that are covered will usually be worth more money. There are usually caps as to how much can be claimed with national insurance. With private insurance, there usually aren’t any caps, but the more coverage that you request, the higher the rate will be for the policy. You would need to cover everything else in the home with your own money if you only have national coverage.

Some of the things that are covered with national insurance include the building and the foundation. This is beneficial if water reaches past the basement or lower portions of the home. All of the electrical and plumbing systems are covered under national insurance. This includes the central air system and the heating system. If the system is new, then it could be covered by a warranty from the company that installed it as well. Appliances are covered as long as they are built into the building. This is where private insurance is beneficial as all appliances can be covered under that kind of policy. Carpeting that is permanently installed in the home is also covered.

Private insurance will cover all of the items as well as other components. It will pay for a hotel room and food for a short period of time after the flood until you can find other housing. Some national policies will cover clothing and bedding as well as personal possessions that have special meaning.