What Does Flood Insurance Cover? A Breakdown of What is Covered by Flood Insurance

Introduction

Floods are the number one natural disaster in the United States, causing billions of dollars in property damage every year. Yet, despite the risk, many homeowners are unaware of the need for flood insurance and what it covers. Here's the thing: even just an inch of flooding can result in up to $25,000 worth of damage to your home, according to FEMA. And yet, when disaster strikes, too many families find out that their insurance isn't protecting them after all. This detailed guide explains what flood insurance covers (and what it doesn't) so you can make smart decisions and safeguard your most important investments. Let’s dive in and understand what flood insurance is and what it covers.

What Is Flood Insurance?

Flood insurance is a specialized insurance policy. It protects your property and belongings from losses incurred due to flooding. Standard homeowners insurance typically does not cover flood damage and is therefore not an adequate safeguard for the kinds of calamities that heavy rain, hurricanes, or overflowing rivers can inflict. If you want to insure against such events, then you need to have flood insurance.

In the U.S., there are two primary sources for obtaining flood insurance: the National Flood Insurance Program (NFIP) and private flood insurance companies. Most people who have flood insurance have it through FEMAs National Flood Insurance Program. The NFIP offers up to $250,000 for building coverage and $100,000 for contents coverage for single and two-to-four family homes. Private flood insurance, by contrast, can offer higher limits and several more options than are available through the NFIP.

So, what does flood insurance cover? The answer lies in what “flood” means in the insurance domain. Flood insurance covers damage caused by surface water from any source that inundates normally dry land across at least two properties or spreads over two acres of land. That’s different from water damage due to burst pipes or roof leaks, which is generally covered by homeowners' insurance.

Knowing what is covered under flood insurance is important, since many people wrongly believe their regular homeowners’ policy will help them in the event of a flood. In fact, the only thing that’s going to fill that gap is a flood insurance policy, making sure you aren’t on the hook for thousands of dollars.

What Does Flood Insurance Cover?

When it comes to flood insurance coverage, it’s important to break it down into two main categories: building (dwelling) coverage and personal property (contents) coverage. Let’s explore each in detail.

Building (Dwelling) Coverage

Flood insurance covers the physical structure of your home and its essential systems. Here’s what is generally covered by flood insurance under building coverage:

Building: Includes foundation, exterior and interior walls, insulation, windows, doors, trim work, flooring, carpet permanently installed over unfinished flooring, and permanently installed cupboards, bookcases, cabinets, paneling, wallpaper, and wall mirrors.
Electrical systems: Includes junction and circuit breaker boxes, wiring, outlets, switches, and light fixtures
Plumbing systems/fixtures, water heaters, and garbage disposal units.
HVAC systems: Central air conditioners, heat pumps, radiators, and furnaces.
Fuel tanks and fuel in them.
Installed appliances: Such as refrigerators, ovens, ranges, stoves, and built-in dishwashers and microwave ovens.
Detached garages: Up to 10% of the building coverage limit can be applied for damages to a detached garage.

Personal Property (Contents) Coverage

Flood insurance can also protect your belongings inside the home. Here’s what is generally covered by flood insurance for contents:

Furniture: Sofas, beds, tables, and chairs.
Electronics: TVs, computers, and sound systems.
Clothing: All your wearable items.
Installed Appliances: Washers, dryers, food freezers (and the food in any freezer), and portable air conditioning units, dishwashers and microwave ovens.
Curtains and carpets (not permanently installed over unfinished flooring)

Other Coverages

Debris Removal
Loss Avoidance Measures
Condominium Loss Assessments
Increased Cost of Compliance

As you can see, flood insurance provides comprehensive cover for your home’s structure and most personal belongings, but there are important exclusions to keep in mind. Be sure to speak with your insurance professional so you can get the right coverage for your situation.

What Flood Insurance Does NOT Cover

While flood insurance is a critical safety net, it’s equally important to know what flood insurance covers, as well as what it doesn’t. Many homeowners are surprised to learn that certain items and situations are generally excluded.

Common Exclusions

Landscaping, trees, shrubs, fences, retaining walls, seawalls, and docks are not covered, even if they are damaged by flooding.
Walks, walkways, decks, patios and other surfaces located outside the perimeter exterior walls of the building.
Swimming pools, hot tubs and spas, including their equipment, are not covered.
Living expenses during displacement: Flood insurance generally does not cover living expenses during displacement, such as staying in a hotel or renting a temporary house.
Vehicles: Auto insurance covers cars, motorcycles, and other vehicles, but not flood insurance.
Mold and mildew: Mold caused by your failure to act quickly following a flood is not covered.

NFIP vs Private Flood Insurance Coverage

When shopping for flood insurance, you’ll encounter two main options: the National Flood Insurance Program (NFIP) and private flood insurance. Here’s how they compare:

NFIP Coverage

Dwelling limit: Up to $250,000
Walks, walkways, decks, patios and other surfaces located outside the perimeter exterior walls of the building.
Contents limit: Up to $100,000
Standardized coverage: Follows federal guidelines
Accepted by lenders

Private Flood Insurance

Higher limits: Can exceed NFIP caps, ideal for high-value homes
Additional coverages: May include living expenses, pool repair, or basement improvements
Flexible underwriting: Sometimes faster and more customizable
Accepted by many lenders, but check with yours
Shorter waiting periods for coverage to take effect

When should you consider private flood insurance?

If your home’s value exceeds NFIP limits or you want broader protection, private flood insurance may be the right choice. Always compare policies and talk to an expert to ensure you’re getting the best coverage for your needs.

Ready to compare your options? Talk to an Advantage Flood expert todayfor a personalized quote and guidance.

Why Understanding Your Flood Coverage Matters

Knowing exactly what flood insurance covers can make the difference between a quick recovery and a financial disaster. Here’s why it matters:

Real-life consequences: Many families have faced devastating losses because they assumed their homeowners' insurance would cover flood damage. Don’t let this happen to you.
Peace of mind: When you know what is covered by flood insurance, you can rest easy, knowing your home and belongings are protected.
Financial recovery: Floods can wipe out years of savings in a single event. The right coverage helps you rebuild without crippling debt.

FAQs

1). Does flood insurance cover flooding from broken pipes?

Not necessarily. Flood insurance covers damage to two or more properties or two or more acres of normally dry land. Broken pipes are typically covered by homeowners' insurance.

2). Is basement coverage included?

Yes, but with limitations. Flood insurance coverage in basements includes essential systems (furnace, water heater, electrical), but not finished walls, floors, or personal belongings stored in a basement.

3). What’s the waiting period for flood insurance?

Most policies have a 30-day waiting period before coverage begins. Private insurance options can take effect in as little as 7 days. Don’t wait until a storm is forecast; plan ahead!

4). Do renters need flood insurance?

Absolutely. Renters can purchase contents-only flood insurance to protect their belongings, even if the building owner has coverage.

5). Does flood insurance cover temporary housing?

Not usually. Flood insurance coverage is limited to your home and belongings, not temporary living expenses incurred during repairs. However, there may be private flood options that will cover additional living expense

6). Are detached structures covered?

Detached garages used solely for parking and storage are covered (up to 10% of the building limit), but other structures like sheds or guest houses require separate policies.

7). Can I buy flood insurance if I’m not in a high-risk area?

Yes! Floods can happen anywhere, and almost 30% of claims come from low-to-moderate risk zones.

Conclusion

Flood insurance is essential, but its details are often misunderstood. Now that you know what flood insurance covers, you can make smart choices to protect your home and family. Don’t wait for disaster to strike; get a free flood risk assessment or quote today.

Ready to protect your home? Contact Advantage Flood or get your tailored flood insurance quote now.