Flood Insurance
Standard home insurance does not cover flood damage, which is why having flood insurance is essential—especially in areas prone to hurricanes, tropical storms, heavy rainfall, storm surge, and rising water levels. A single flood can cause thousands of dollars in damage, and most families cannot afford to pay for repairs out of pocket. The right flood policy helps you recover faster and avoid major financial loss after severe weather.
Understanding Flood Insurance
Flood policies exist because flooding is one of the most common and costly natural disasters in the United States. In 1968, Congress created the National Flood Insurance Program (NFIP) to make flood protection accessible and affordable for property owners.
Through the NFIP, homeowners, renters, and business owners in participating communities can purchase a flood policy. In return, these communities agree to follow FEMA-approved regulations designed to reduce future flooding risks.
If you’re unsure how NFIP policies work, whether your community participates, or what type of coverage you need, the agents at Florida Insurance Agency can help you understand your options and choose a policy that fits your property and location.
What Flood Insurance Covers
Flood policies include two main types of protection:
1. Building Coverage
This covers the physical structure of your home and essential systems inside it.
Building Coverage Typically Includes:
- The insured building and its foundation
- Electrical and plumbing systems
- Central air conditioning units, furnaces, and water heaters
- Refrigerators, stoves, and built-in appliances
- Permanently installed carpeting on unfinished floors
- Detached garages (up to certain limits)
2. Contents Coverage
This protects your personal belongings inside the home.
Contents coverage typically includes:
- Clothing, furniture, and electronics
- Curtains and window treatments
- Portable and window A/C units
- Portable dishwashers and microwaves
- Carpeting not included under building coverage
- Washers and dryers
- Valuable personal items (up to specific NFIP limits)
- Important: Flood policies do not cover the land your home sits on, landscaping, or outdoor property like decks, fences, or pools.
How Flood Claims Are Reimbursed with Flood Insurance
Understanding how reimbursements work can help you know what to expect after a claim.
Replacement Cost Value (RCV)
This pays the cost to replace damaged property without deducting depreciation.
RCV is available only for single-family, primary residences that are insured for at least 80% of their full replacement cost.
Actual Cash Value (ACV)
This pays the depreciated value of items at the time of loss.
All personal belongings—meaning contents inside your home—are reimbursed using ACV under NFIP rules.
These guidelines come from FloodSmart.gov, the official FEMA flood insurance resource.
Why Flood Insurance Matters
Even a few inches of water can cause severe damage to flooring, walls, electrical systems, and personal belongings. Most disaster assistance comes in the form of low-interest loans—not free money. Flood insurance is often the most reliable way to ensure you can rebuild and recover quickly after a storm.
Want More Information or a Flood Insurance Quote?
If you’re ready to explore your options or want a personalized insurance quote, we’re here to help.
