Flood Insurance: What it is

Floods can happen almost anywhere. You don’t have to be in a high-risk area to be affected by it. In fact, even just an inch of water into your home can already cause property damage. In the U.S. alone, flood-related damages cost homeowners over one billion dollars per year.

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Did you know that flooding isn’t covered by any property insurance? Whether you have home insurance or business insurance, you may need to get a separate flood insurance policy to have financial protection from flood damage.

What does Flood Insurance Cover?

Most flood insurance policies give you three types of protection.

• Building Coverage: This coverage provides protection of the physical structure of your property, be it residential or commercial.
• Contents Coverage: This coverage provides protection of your belongings and everything inside of your property. It includes coverage for clothing, grills, furniture, and microwave ovens.
• Replacement Cost Coverage: This coverage will reimburse you for the replacement cost of your home. Note that this is only available to single-family homes that are insured to about 80% of the total replacement value.

Flood insurance may also cover the cost of items that are used for property protection from imminent dangers of flooding. To know more about the extent of flood insurance coverage, make sure you talk to your agent.

Are there Limits to your Flood Insurance Coverage?

An insurance limit is a maximum amount your flood insurance policy will pay for a covered event. You will be responsible for the losses or damages exceeding the limits of your policy. Most flood insurance policies have the following limits:

• Your flood insurance policy’s building coverage can insure your home’s structure for up to $250,000, and your commercial building for up to $500,000.
• The contents coverage, on the other hand, will insure your personal belongings at home for up to $100,000, and up to $500,000 for your commercial building. Contents are often covered for its actual (market) value, not the purchase price.

If you want to have coverage for more than these maximum limits, you can purchase additional coverage. Discuss your options with your agents.

Here at Brad Spurgeon Insurance, we specialize in providing flood insurance coverage to Texas residents at a competitive price. Get a free quote from us now and talk to one of our agents. Call us at (409) 945-4746 or visit us today.