Flood insurance is covered by the National Flood Insurance Program for flood-prone areas. The power of water is never more obvious than during a flood. Here are some commonly asked questions such as does flood insurance cover hurricanes.
Do I Need It?
If your home or business resides in a high-risk flood zone, flood insurance is required by your mortgage company. Standard homeowners insurance policies do not cover flood damage even if they cover water damage such as burst pipes. The NFIP helps offset the premium cost to homeowners who need coverage. If you live in a flood zone, it is a good idea to obtain the policy even if you don’t have a mortgage. The MLS listing usually contains flood zone information.
What Does It Cover?
The higher the risk, the more expensive the insurance is likely to be. Flood insurance covers damage caused by extreme weather events such as hurricanes. Essentials of the home such as flooring, furniture and appliances are covered under the policy. The amount of deductible you pay depends on the policy. Federal flood insurance caps at $100,000 for personal belongings and $250,000 for the building.
The start of hurricane season typically sparks the question does flood insurance cover hurricanes. Make sure your covered when the next system comes ashore with flood insurance.