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HomeTopicsHome InsuranceFlood Insurance
Flood Insurance: A Separate Home Insurance PolicyAlthough a standard homeowner insurance policy has provisions for certain water damage, flood damage is not covered. Flood coverage requires a separate flood insurance policy, which can often be made available through your homeowner insurance provider.
Flood DamageFor insurance purposes, the definition of flood damage is damage caused to your home after water has come in contact with the ground. Examples include:
Water DamageA flood insurance policy is meant to complement the homeowner insurance policy. The homeowner insurance policy will cover and recognize water damage as damage that occurs prior to water touching the ground. Examples include:
Flood Mapping and Special Flood Hazard AreasThe National Flood Insurance Program (NFIP), created by Congress in 1968 to ease the financial burden of flood-related disasters, oversees and maps areas that are susceptible to flooding. Some areas are considered Special Flood Hazard Areas and are required by law to purchase flood insurance because of their known risk for flooding. Areas outside of Special Flood Hazard Areas are not immune to the dangers of flooding by heavy rains, poor drainage, hurricanes, storms, or melting snow. Almost one fourth of all floods occur in lower risk flood areas.
Flood Insurance PoliciesA flood insurance policy can insure up to $250,000 for a single residence. Other options can be added to cover the replacement of contents. Insured items vary with policies. In some policies, below ground basements are limited to coverage of certain appliances, electrical wiring and unfinished structure damage. Be specific about what your coverage needs are when looking for a flood policy.
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