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Flood Insurance

A Guide to Flood Insurance Coverage

Flood insurance protects policyholders from damage that is the result of floods. This specific coverage is important for the simple fact that homeowners’ insurance will hardly ever include coverage for flood-related damage.

Who It Benefits

In order to be considered for this protection, a flood event must result in at least 2 acres of land being affected along with at least two properties (including yours) also be directly affected. Also, the flood must be the result of tidal waters or due to another source that causes unusually rapid flowing waters. Often mud flow will also be eligible for this insurance protection.
It is important to note for homeowners or business owners that flood insurance policies are most useful and more easily attainable in what are called “”special hazard flood areas.””

How it Works

If one is the victim of flood caused loss or damage, a claim must first be filed prior to any benefits being received. Any claim will be first investigated and then reviewed by a claims adjuster. The policyholder will be contacted for specific information regarding the loss to determine the coverage that is most relevant for your claim. Soon the adjuster will make a determination and then finalize the claim with estimates for loss and the amount of the settlement. Once you are approved, you can begin the process of making any needed repairs (or to relocate should the damage be that extensive).

Coverage in two Components:

Building Coverage
Contents Coverage
“Building Coverage” refers to one’s home or business property. Building coverage levels can be obtained for up to $250,000. For business property, the coverage is normally half a million dollars max. Coverage is also available for those who need help in moving.
“Contents Coverage” protects one’s personal property in the event of flood damage. Personal items are covered at actual cost value, which is not the same as a purchase price. (This takes into account depreciation and market value.) Usually, personal property coverage is available for up to $100,000 for residential policies and up to $500,000 for covered businesses.


In purchasing this coverage, you will be putting yourself in a position to potentially save thousands upon thousands of dollars should a flood ever strike. Having good flood insurance means you will be protected from having to pay exorbitant out-of-pocket costs for flood damages. And, surprisingly, flood coverage is relatively affordable. Depending on the level of risk, one might pay as little as $200 per year for such coverage.
If you are buying a new home or business, (or if you want to protect your existing property), talk to an insurance professional today about obtaining coverage that can protect you from the financial repercussions of flood damage.