What is Flood Insurance?
Unlike a standard homeowner's insurance policy, flood insurance covers losses to your property caused by flooding. Some of the things a standard flood insurance policy will cover include:
- structural damage
- furnace, water heater and air conditioner
- flood debris clean up
- floor surfaces such as carpeting and tile.
You can also buy a flood insurance policy to cover the contents of your home, such as furniture, collectibles, clothing, jewelry and artwork.
Policies are available in three forms: Dwelling (most homes), General Property (apartments and businesses), and Residential Condominium Building Association (condominiums).
It is important to know that if you have a federally backed mortgage on a home located in a high-risk area, federal law requires you to purchase flood insurance. Also, if you've received a federal grant for previous flood losses, you must have a flood policy to qualify for future aid.
The Standard Flood Insurance Policy
The Preferred Risk Policy