Flood insurance at a glance

Flood insurance is usually a separate policy designed to protect your home and property when it is damaged in a flood. Standard home insurance such as home insurance generally does not cover damage due to flooding.

The following points should be observed in flood insurance:

Typical home insurance usually includes a number of standard protections, including:


In some cases, you may need flood insurance. If you are a homeowner in a high-risk flood area, you may need to purchase flood insurance from your mortgage lender, says FloodSmart.gov.

Flood insurance doesn’t just apply to homes in high-risk areas. The Federal Emergency Management Agency (FEMA) reports that floods have occurred in the 50 states and that more than 20 percent of the claims it handles come from medium to low-risk areas.


Flood insurance is generally available to people in communities participating in the National Flood Insurance Program (NFIP). Flood insurance can be purchased from local insurance agents with homeowners, business owners, and renters who want to protect their homes, buildings, and property. (Homeowners can purchase separate flood insurance policies to protect the home.)


So what helps protect a flood policy? FEMA says it can buy a blanket to protect your home, your belongings, or both. Here are some of the basic concepts of these two types of coverage:

Build real estate coverage

Which help secures: the physical structure of your home and its establishment, Sanitary, and electrical frameworks, focal air and warming frameworks; Attached racks, cabinets and boards; and a different carport (other separate structures require their own arrangements)

.How it is normally paid: the basic replacement costs (which would be required to repair the house in today’s dollars) for a principal residence and the actual cash value (which takes depreciation into account) for a house vacation.

Maximum coverage limit: $250,000

Personal Content Reports

What contributes to protection: clothing, furniture, and electronic products; Curtains on certain portable devices; Freezers and the food therein; and certain valuables such as art (up to a certain limit).How it is normally paid: the basis for the actual cash value (taking depreciation into account).

Maximum coverage limit: $100,000