Flood Insurance

Flood Insurance

Flood insurance provides financial assistance when certain property is damaged by a flood. This applies to commercial and residential property. It is not included in traditional homeowners insurance and must be purchased separately. It is not mandatory unless the building is in a high-risk flood area. If that’s the case, then your insurer will probably insist on flood coverage. Otherwise, coverage is optional.

In addition to getting coverage from a traditional insurance agency, some policies are written by the National Flood Insurance Program. The specifics of any policy depend upon flood risk areas. These areas can be located on a Flood Insurance Rate Map that determines the yearly premium for the insurance.

Available Policies

Residential coverage is for damage to your home, including the garage and personal belongings.

The items covered include electrical and plumbing systems, home and garage foundation, refrigerators, and stoves. Built-in appliances like central air-conditioning, furnaces, and water heaters are included as well. Then there is the carpeting, paneling, and wallboards. Basically, practically anything in the home is covered by the policy. Washers and dryers, air-conditioners, clothing, and other personal belongings are all covered.

Commercial coverage is for commercial property. The policy covers the same building and personal property items as covered in the residential coverage. This policy provides coverage for a commercial property that is located in moderate to low-risk flood areas. In the event a commercial property does not qualify for the Preferred Risk Policy, then a standard rated policy is probably the only option.


The specifics depend upon the flood insurance policy in question. The policy may be able to reimburse up to $250,000 for residential locations and $100,000 for content. Policies for business and content coverage might be able to cover up to $500,000. It depends on how your policy is configured. It is important to understand all the specifics before you purchase the policy.