What Does Flood Insurance Cover?

If you live in an area that may be prone to flooding, purchasing flood insurance is important. However, many people don’t realize what is and is not covered by flood insurance. Learning what is covered can help you learn what to expect if your home floods. Here are a few things that you should know about flood insurance and coverage.

Your Home

If you purchase building property flood insurance, your flood insurance will cover your home. This includes the foundation, electrical systems, plumbing systems, kitchen appliances, flooring and other permanently installed fixtures, such as cabinets. However, it is important to note that the value that is covered varies based on the value of the policy you buy. Ensure the policy covers the entire value of your home or you could find yourself underwater if your home is damaged by a flood and the repairs are more than the value of your policy.

Your Personal Property

If you purchase personal property flood insurance, your flood insurance will cover the personal property in your home. This includes furniture, electronics, dishes, clothing, toys, and artwork. Once again, it is important to ensure the value of your policy covers the value of your personal property.

Your Land

Flood insurance does not cover your land. This is important to point out as floods can damage your land, and you may need to replant or flatten land following a flood. Knowing that your land is not covered can help ensure that you have money set aside for the cost to restore your land after a flood if you live in an area prone to flooding.

If you are in the market for new flood insurance or are interested in learning more, contact Calhoun Risk Management. They serve the greater Minneapolis, MN area and can help you find the right flood insurance for your home.