Understanding Flood Insurance : A Comprehensive Guide 

Why do we need to understand what flood insurance is?

Whether you’re a homeowner, renter or business, floods are among the most relevant and threatening incidents to consider. Even an inch of floodwater can cause catastrophic damage to your property and belongings, and incur extensive financial losses. Furthermore, floods may arise from many situations, including heavy rainfall, rapid snowmelt and broken water mains or levees.

Given the frequency of these incidents and the potential consequences, understanding, implementing and maintaining appropriate loss control measures, including flood insurance, is essential.

What’s Flood Insurance?

As its name suggests, this is a specialized type of property coverage that can provide financial security in the wake of such incidents. Whether seeking coverage for a residential or commercial property, you should know that this type of insurance is generally not included in standard homeowners, renters or commercial property insurance policies. You may need to purchase an endorsement or separate flood insurance policy.

What Does it Cover?

Flood insurance coverage generally encompasses incidents where external water enters your home or business and causes damage. The specific details of what can trigger flood insurance may vary by insurer.

Water damage from inside your home, such as a broken pipe, does not generally constitute a flood. In contrast, issues arising from the following typically can trigger a flood insurance claim:

• Heavy rainfall
• Hurricanes
• Rapid snowmelt
• Overflowing bodies of water
• Blocked storm drainage systems
• Broken dams or levees

What Are the Types of Flood Insurance?

This type of is commonly purchased through the Federal Emergency Management Agency’s National Flood Insurance Program (NFIP). In recent years, many private insurance carriers have also begun to operate as insurance brokers, offering their own policies, which may include greater customization opportunities and higher coverage limits.

Regardless of how you secure your insurance, policies are typically multifaceted and include the following components:

• Building coverage focuses on financially protecting the physical elements of an insured structure. This may include its roof, foundations, walls, plumbing and electrical systems, and attached fixtures (e.g., paneling, bookcases and cabinets).
• Contents coverage can provide financial assistance to recoup losses involving a policyholder’s possessions, including electronics, clothing, furniture, small appliances, curtains and other valuables.

Get the Right Coverage

As a knowledgeable and experienced independent agency with two locations in Stuart and Hollywood, Florida, First Choice Insurance Solutions Inc is well-positioned to help you assess and address your flood-related coverage needs. Visit our website or call 855-923-0906 to learn more about your options and ensure you’re prepared for floods.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.