Flood Insurance: What’s covered and what’s not

Posted by Scott Stueber on May 26, 2015 12:31:00 PM

Water-damage-in-houseThe news media spends countless hours reporting the devastation and destruction severe weather causes. Think of all the images you’ve seen in the last year for tornadoes, floods, blizzards, ice storms etc. Now pick which one you think creates the most damage.

My guess would have been tornadoes. If you agree with me, that answer is incorrect. Floods are the number-one disaster in the United States. The average flood claim from 2008 – 2012 was $42,000.

Unless you live near a river or lake, you probably don’t give flood insurance much thought. You may think a flood will never happen where you live. Yet, weather patterns can change quickly, bringing several inches of rain to your community. So are you covered when the water starts creeping up your driveway?

Property360.com published an article titled, “5 things you should know about flood insurance.” What I like about the article is they provide a comprehensive list of what’s covered and what’s not covered by flood insurance. Standard homeowners insurance doesn’t provide coverage for damage caused by a flood. Auto insurance will provide coverage if your car turns into a raft and can be seen floating down the street.

Here are a few things that are covered.

  • The building and its foundation;
  • Major systems and appliances; and
  • Curtains and blinds.

Here are a few things that aren’t covered.

  • Decks, hot tubs, and swimming pools;
  • Cars, motorcycles, four-wheelers, snowmobiles; and
  • Money, precious metals, and other important and valuable papers.

Congress created the National Flood Insurance Program (NFIP) in 1968 to help protect property owners from the financial devastation of a flood. I understand that purchasing insurance isn’t fun or exciting. I also understand you probably feel you already spend too much on insurance. However, I challenge you to re-think this position. When you buy insurance, you’re transferring the risk from you to an insurance company. Personally, I don’t have $42,000 do pay out on a claim. Do you?

Talk to your agent to make sure you have the protection you need.

Do you have anything you’d like to share? If so, I’d love to hear from you. Please share your thoughts in the box below.


This article is intended for general educational and illustrative purposes only and should not be construed to communicate legal or professional advice. Further, this article is not an offer to sell insurance. Please consult with your licensed insurance agent for specific coverage details and your insurance eligibility. All policies are subject to the terms, conditions, limitations, definitions, and exclusions contained therein.

Topics: Auto Insurance, Home Insurance, Weather

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