Back in August we talked about the definition of a flood and how it affects clients in Michigan. I would like to continue that topic and discuss what is actually covered by a flood insurance policy. According to the NFIP, generally, physical damage to your building or personal property “directly” caused by a flood are covered by your flood insurance policy. Here is a brief list (not limited to) of what is covered under “Building” coverage:
- The insured building and it’s foundation
- The electrical and plumbing systems
- Central air conditioning equipment, furnace and water heaters
- Refrigerators, cooking stoves and built-in appliances like dishwashers
- Permanently installed carpet over an unfinished floor
- Detached garage (up to 10% of building coverage)
- Debris removal
A brief list of what is covered under the “Personal Property” coverage:
- Personal belongings such as clothing, furniture and electronic equipment
- Portable and window air conditioners
- Portable microwave ovens and portable dishwashers
- Carpets not included in building coverage
- Clothes washers and dryers
- Food freezers and the food in them
What is not covered by either Building or Property Coverage:
- Damage caused by moisture, mildew or mold that could have been avoided by the property owner.
- Currency, precious metals and valuable papers such as stock certificates.
- Property and belongings outside of a building such as trees, plants, wells, septic systems, walks, patios, fences, seawalls, hot tubs and swimming pools.
- Living expenses such as temporary housing
- Financial loss caused by business interruption
- Most self propelled vehicles such as cars, including their parts.
Now, with all of the above being said, we will discuss next time the coverage limitations in a basement. Stay tuned because I think you will be surprised.
*Lists taken from the FEMA National Flood Insurance Program Summary of Coverage.*
Submitted by Tammy