Flood Insurance

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
  • Curtains
  • 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