What Flood Insurance Covers [And Does Not] in 2022

Do you want to know what flood insurance covers and what it doesn’t? This type of policy helps you recover some items that are damaged by the flood in your home.

In this article, we help you understand the different coverages offered. You will also find out if flood insurance covers the basement or not.

What is Flood Insurance Coverage Policy?

Flood insurance is a type of insurance policy that protects your home and belongings from flood-triggered damage.

It is not common to get this coverage with homeowner’s insurance. So, you must buy the flood insurance coverage options separately.

What Does Flood Insurance Cover?

The policy only protects your home and properties if they are damaged by a flood. If other factors led to the damage, the policy may not cover those. Rather, your home insurance policy would cover those damages.

It is worth mentioning that typical flood insurance covers the entire structure of the building. For example, the policy covers your water heaters, built-in appliances, and the building’s foundation.

Certain content of the building is also covered. Notable among these are dryers, furniture, dishwashers, and portal air conditioners. Your clothing, washing machines, and electronics are also included in the coverage.

Will Flood Insurance Cover Mold?

Mold is most times, the aftermath of flooding. Mold grows when there has been a dense dominance of water in a particular area in the house. So, you may be thinking that flood insurance covers mold.

On the contrary, flood insurance doesn’t cover mold. Instead, the homeowner’s insurance does!

The National Flood Insurance Program (NFIP) advises homeowners to make an immediate cleaning up of their homes after flooding. That way, the chances of mold growth will be reduced.

Generally, the NFIP doesn’t offer flood insurance coverage options for mold. Homeowners should either clean up their homes after flooding to prevent mold spread or get home insurance to cover that.

Will Flood Insurance Cover Basement?

It might make sense to think that flood insurance covers the basement. We mean, it is a part of your home. So, why shouldn’t it be covered?

Interestingly, your basement may not be covered by the policy for the following reasons:

Basement has Limited Protection with Flood Insurance Policy

Your basement will not get full coverage, especially if you have converted it to a “home theater” of sorts. The reason is simply that the policy only covers the structure of the building.

As such, only the central air conditioners, drywall, and electrical switches are covered. Other structures covered are:

  • Foundation
  • Staircases
  • Insulation

What is Not Covered by Flood Insurance Policy?

Beyond the structures, the policy may not cover anything else. Here are some examples of items that are not included in flood insurance policies:

1.    Living Expenses

Flood insurance doesn’t cover additional living expenses or living expenses.They are instead, covered by the home insurance policy.

In a case that your home is deemed “uninhabitable” because of flooding, you wouldn’t be reimbursed or have your primary bills paid for the time being.

2.    Avoidable Damages are not Covered

Certain damages in the home could have been prevented if the homeowner took the necessary precautions. These types of damages are not covered by the flood insurance policy. Examples are:

  • Mildew
  • Mold

3.    External Properties

As the flood insurance covers the building’s structure, anything outside that is ruled out. External properties are not covered in the policy. Your pools, detached sheds, hot pools, and fences will not be covered. Also, your septic systems, patios, and landscaping will not be covered.

4.    Precious Metals are never Covered by Flood Insurance

This coverage is not limited to flood insurance. Generally, valuable paperwork, currencies, and precious metals are not covered in insurance policies.

Likewise, the flood insurance policy doesn’t precious metals or stock certificates.

How to Determine if Your Property Needs Flood Insurance

Not every property requires flood insurance. Find out below some of the factors that require you to get the policy at once.

1.    Moderate Risk Areas

You need the policy if you live in an area with moderate flooding risk. It is because the chances are that flooding will be rampant in no distant time.

2.    Special Flood Hazard Areas

Special Flood Hazard Areas (SFHAs) are locations with the highest flooding rates. Get your flood insurance policy if you need it in any of those areas to help reduce the financial losses caused by flood-related damages to your property and belongings.

How to Purchase Flood Insurance Policy?

You can get started by contacting your insurance company. The company will walk you through the process. Note that this is an add-on policy, so, it must be purchased separately.

The National Flood Insurance Policy (NFIP) is the core provider of flood insurance in the United States. FEMA administers it across the country and has an ongoing relationship with over 50 insurance companies.

If you are unable to get across to your insurer, contact an insurance agent to help you get the policy.

How Long Does It Take to Get a Flood Insurance Policy?

Start planning ahead of time before applying for the flood insurance policy. FEMA recommends purchasingthe policy at least 30 days from the time you need it.

This enables the 30-day waiting period for the policy to be exhausted before it kicks in. However, you may be able to fast-track it by combining it with a mortgage. In that case, the policy kicks in immediately after you take out a mortgage.

How Much Will It Cost to Get what Flood Insurance Covers?

The cost of flood insurance premium is up to $400. That is the case if you live in a moderate-risk flooded area.

However, you can pay a premium of $700 on an average, depending on the flood insurance providing company.

The higher-risk areas pay more and can have an annual premium of $1000 or more.

Verdict: What Flood Insurance Covers is Structural

A flood insurance policy covers only the structural areas of the home and personal belongings damaged by the flood. You may need to purchase a homeowner’s policy (if you don’t have one), to cover other valuables in your home.


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