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4 FAQs About Flood Insurance


Did you know that of all the natural disasters in the United States, floods have caused the most death and destruction? This is partly due to the fact that every state in the country is susceptible to flooding. States don't have to be located near a body of water in order for flooding to happen.


In many instances, flooding is the result of rain falling on land that is normally dry. In the United States, flooding causes an average of $8 billion a year in damage, according to National Geographic.


Because floods are both common and destructive, homeowners should have flood insurance. For homeowners who want to know more about flood insurance, here are the answers to four frequently asked questions.

1. Doesn't Homeowners Insurance Cover Flood Damage? You might think that your homeowners insurance covers damages caused by floods. This makes sense, as most homeowners insurance policies cover damage by storms or fires. However, this isn't the case when it comes to flood damage. Usually, the only kind of water damage that is covered by homeowners insurance is when the damage occurs inside the home.


For instance, if your pipes burst and causes damage to the floor, that damage would typically be covered by homeowners insurance. Some homeowners insurance policies also covers damage caused by wind-driven rain. If you're not sure what kind of water damage your homeowners insurance policy covers, you should ask your insurance agent.

2. What Does Flood Insurance Cover? Certain homeowners are required to get flood insurance, including those who live in an area that is at a high risk of flooding who have a mortgage on their home. Homeowners can choose from two different types of flood insurance policies. These policies cover your actual home or your personal property. One insurance policy covers up to $250,000 for your home and the other covers up to $100,000 for personal property. You can choose to get one or the other, or you can have both. A flood insurance policy that covers your actual home will pay for damages sustained to your home and its foundation as well as the following:

  • HVAC equipment

  • Electrical and plumbing systems

  • Kitchen appliances

  • Permanently installed carpeting and wallboard

The policy will also cover the cost of debris removal. A personal property flood insurance policy covers things like furniture, electronic equipment, and certain appliances like washers and dryers. It will also cover your freezer and the food in the freezer. Up to $2,500 worth of valuables are covered by this type of policy as well.

3. How Much Does Flood Insurance Cost? The average cost of flood insurance is $699 a year. This price varies, and usually depends upon which state you reside in, and whether your property is at a high risk of flooding. In the state of Florida, the cost of flood insurance is less than the national average. This is surprising, considering the number of hurricanes in the state that cause flooding.


One of the reasons the average cost of flood insurance in Florida is only $550 a year is because the state has access to a private flood insurance company. This is not the case in many states, as they only have access to a federally regulated program called the National Flood Insurance Program (NFIP).


Despite the low average rate in Florida, residents who live in a high risk area may have to pay thousands of dollars for flood insurance. 4. Who Should I Contact for Flood Insurance? If you live in the state of Florida, you likely need flood insurance. This is especially the case if you live in an area that is prone to flooding. Contact Gulf Coast Insurance if you have more questions about flood insurance or you want to get a flood insurance policy.

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