What Does Flood Insurance Really Cover?

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What Does Flood Insurance Really Cover?

See how we're different

Homeowners searching for flood insurance will come across insurance companies offering the National Flood Insurance Program (NFIP). It’s a federally regulated program that aims to decrease the impact of flooding on private and public properties. The program reduces the socio-economic impact of disasters by promoting the purchase and retention of general risk insurance, but also of flood insurance, specifically.

NFIP promotes the adoption of floodplain management regulations put in place to mitigate the effects of flooding on residential and commercial properties. The primary objective of the program is to persuade people to purchase flood insurance.

Through the NFIP, homeowners can obtain the following types of flood coverage:

  • The first covers the actual residence of the homeowner, offering coverage of up to $250,000
  • The second covers the personal property of the homeowners, offering coverage of up to $100,000

Homeowners have the option of buying either one or both. It is pertinent for homeowners to obtain flood insurance if they reside in an area prone to floods. This is especially important if homeowners are buying a home in an area that the insurance company considers high-risk area such as a Special Hazard Floor Area.

If you’re unsure whether you’re in a flood zone or not check out our blog on: How to check if your house is in a flood zone

It’s important to note that is not necessary for homeowners to buy flood insurance coverage from the NFIP, but they can obtain it through one of the many private insurance companies in their area, or through a local agency like us!



Flood Insurance Covers the Following Things

Here is a list of things that come under flood insurance:


Important Home Systems

  • Fridge, but not the food stored in it
  • Ranges
  • Built-in appliances
  • Washing machines
  • Dishwashers
  • Dryers
  • Portable window conditioner
  • Portable freezers and the food stored in them

Window Treatments and Carpeting

  • Permanently installed carpeting covering unfinished floor
  • Carpets covering wooden floors
  • Window blinds and curtains

Permanently Installed Wallboard, Paneling, Cabinets, and Bookcases

  • Replace damaged cabinets

Foundation anchorage systems, walls, and staircases

  • It contains an exclusion for loss caused by the movement of earth even if the movement is due to flood.

A Detached Garage for Limited Parking or Storage

  • Homeowners can use up to 10% of their complete building insurance toward their garage, but they subtract the amount from the total amount of building insurance available to the homeowner

Personal Property

  • Clothes
  • Furniture
  • Electronic equipment, but only if the homeowner has not stored them in the basement


Original furs and artwork valued up to $2,500

Additional Coverage

    • Groundwater seepage and mudslides
      • Another person’s swimming pool collapses and water flows into your home
      • A water main breaks and damages your home as well as another person’s home
      • Sewer backup is not covered unless it occurred as a result of flooding


Flood insurance usually does not cover items stored in a safety deposit box such as bearer bonds, stock certificates, and precious metals. Since flood insurance does not cover everything effected by a flood, homeowners can take out additional excess flood insurance that covers what the standard flood insurance would not.

Homeowners can discuss their options pertaining to flood insurance coverage by consulting with a private insurance company that offers insurance to people with higher valued properties. Moreover, some communities may not participate in the NFIP insurance program. Homeowners who are part of those communities can obtain flood insurance through a private insurance company.


Quick Facts about Flood Insurance


Here are some interesting facts about flood insurance:

  • More than 40% of homeowners have the misconception that the standard homeowners insurance coverage covers flood damage
  • Flood insurance does not cover damage due to floods, just wind damage
  • Only 12% of homeowners have taken out flood insurance coverage
  • NFIP states that 15% of homeowners have taken out flood insurance coverage

Homeowners interested in obtaining flood insurance should do it as soon as possible because as it takes 30 days for the insurance to go into effect. It will not do homeowners any good if they purchase homeowners insurance after that.


Should You Buy Flood Insurance Through NFIP or Private Insurance Companies?


The following are a few reasons why homeowners may consider obtaining flood insurance through a private insurance company over NFIP:

  • Obtain high limits of flood insurance coverage in excess of $250,000 without the need to take out an excess flood insurance coverage
  • Flood insurance coverage may include replacement cost on the homeowner’s personal property and building as well as coverage for other structures present on the homeowner’s property
  • People can also obtain additional living expense insurance and business owners can obtain business income expense insurance
  • Homeowners may not need to wait 30 days for the flood insurance coverage to go into effect
  • Can send a single adjuster to examine the homeowner’s property for flood and wind damage

In the event the private insurance company either drops their flood insurance coverage or fails to renew it, homeowners will need to wait 30 days to get back into the NFIP. For this reason, it is important for homeowners to weigh all the pros and cons of obtaining flood insurance coverage through either the NFIP and private insurance company.

Making the right decision is pertinent for homeowners looking for better flood insurance coverage and lower premiums.

Questions? We’re here to help!


We hope you found this article helpful. If you need to speak with an agent, please feel free to use the chat feature in the bottom left-hand corner or contact us at 203-481-8898. If you’d like to get a free flood insurance quote please visit our Flood Insurance page for more information about how we found the insurance policies for our clients for over 30 years.

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We find you the best and most affordable insurance. See how we're different.

Pawson Insurance | Legal Disclaimer |

 Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. Statements on this website as to policies and coverages provide general information only. This information is not an offer to sell insurance.