Whether you own a residential or commercial building, you need flood insurance. Even though your property may not be located in a high-risk area, you still need to have coverage. In fact, statistics show that most insurance claims for flood damage come from low to no-risk areas. This is because floods can happen anywhere and at any time. However, for you to have a solid flood insurance policy, you need to know what the company will cover and what it will not. Below is a summary of the things that a typical flood policy will and will not cover.
What is covered?
When it comes to building property, the flood policy will cover the insured building and its foundation, plumbing and electrical systems, water heaters, furnaces and AC equipment, and in-build appliances such as dishwashers, cooking stoves and refrigerators. The policy will also cover permanently installed wallboard, paneling, cabinets, bookcases and carpeting. The coverage also extends to window blinds and debris removal.
When it comes to your own personal items, the policy will cover clothing, furniture and electronics. The coverage will also include your curtains, window and portable air conditioners, portable dishwashers and microwave ovens, washing machines and dryers, food freezers and any foods that might be in them. The coverage will also extend to carpets that are not covered in the building property.
What is not covered?
It is vital to realize that your flood policy has limitations. It is vital to be aware of these limitations so that you can take quick and appropriate action when disaster strikes. Your flood insurance will not cover damage caused by mold, mildew or moisture, which you could have avoided. You will not receive a claim for any bonds, cash, precious metal or valuable certificate that will be destroyed in the flood. The policy does not cover any property outside the insured home such as tress, walks, wells, fences, decks, patios, swimming pools, seawalls or hot tubs.
Your flood policy will not cover automobiles and their parts if they are destroyed in the flood. The insurance company will also not be responsible for your temporary living quarters. The policy does not include coverage of any financial losses due to business interruptions caused by the flood or loss of insured equipment. It is also vital to note that coverage is limited in basements regardless of the date of constructions. You should ask your agent all these questions before signing the deal.