A common misunderstanding is that damages caused by floods are covered by homeowners’ insurance. In fact, standard homeowners’ policies exclude coverage for flood damage. Don’t let your home and belongings get washed away. Working with BMT Insurance Advisors to purchase flood insurance will help protect the things you value. There are two types of flood insurance: building coverage and contents coverage.
While contents coverage may vary, building coverage generally protects structures including:
- Electrical and plumbing systems
- Water heaters and furnaces
- Built-in appliances (refrigerators, dishwashers, stoves)
- Permanently installed carpeting
- Permanently installed flooring, cabinetry, and shelving
- Fuel tanks, water tanks, pumps
- Detached garages
A common error people make in understanding flood insurance is they believe any damage caused by water is covered by flood insurance. This is not typically the case. Flood insurance covers losses directly caused when an excess of water on land that is normally dry affects land containing two or more properties.
Other things to consider are those items not covered by building or content coverage, such as temporary housing, decks, landscaping, fencing, pools and hot tubs, valuable papers, cars, and personal property kept in basements (even in finished basements).
You’re not located in a designated flood plain and not required to hold flood insurance, should you consider if your home is still at risk?