What is flood insurance?

Flood insurance is a type of insurance policy which protects homeowners from the damages caused by the rising of the water from lakes, rivers, or the sea to their real property. This type of insurance is not included in general property insurance, which makes homeowners buy a separate flood insurance policy.

Flood insurance for property and personal possessions

Flood insurance covers two separate properties. The most common insurance policy is federally regulated, also known as the National Flood Insurance Program (NFIP). It covers the actual home structure in one coverage while another covers the homeowner’s personal belongings, but not all.

If ever there are possessions that has a value exceeding the insurable amount, a homeowner must get another excess flood insurance, which is only offered by private insurance companies.

Flood insurance coverage

The building property coverage of the flood insurance policy includes the following:

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  • The home and its foundation structure, including window blinds, kitchen appliances such as refrigerator, stove, and dishwasher (built-in), permanent floor carpeting, cabinets, and shelves
  • Electrical, plumbing, air-conditioning systems, and water heaters
  • After-flood debri removal

On the other hand, the coverage for personal belongings include the following.

  • Electronic equipment, furniture, and clothings. However, priceless collections must be insured by a separate policy if they exceed the $2,500 maximum value
  • Curtains, temporary carpets, frozen food
  • Portable appliances


A flood insurance policy doesn’t cover the land on which the real property is built. Other personal properties not included in a flood insurance policy (especially in the NFIP) include cars, plants, septic systems, decks,patios, hot tubs, fences, temporary housing, mold damage after the flood, sewer backups, swimming pools, storm shelters, and retaining walls.

Also, there are other personal belongings which are supposed to be kept in the bank. Such things are stocks and bonds certificates, cash, jewelries and precious metals. One last thing is that flood insurance bought because of an incoming storm will not cover the damages of that incoming peril.


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