Did you know that neither standard homeowners insurance nor business property insurance cover flood damage? And when it comes to flood insurance, there is a lot to consider.

The National Flood Insurance Program (NFIP)

In order to help homeowners and businesses affected by flooding, Congress created NFIP in 1968. This program makes flood insurance available to homeowners, business owners and renters living and doing business in communities that participate in the NFIP. In return, the communities adopt and enforce ordinances required or recommended by FEMA to reduce flood risks. 

Types of Flood Insurance

Flood insurance can cover either a building or building contents. It does not cover land occupied by an insured building or personal property.

Building coverage includes:

• The insured building
• Electrical and plumbing systems
• HVAC equipment and water heaters
• Most large and built-in appliances
• Carpeting permanently installed over unfinished floors

Contents coverage includes:

• Portable air conditioners and window units
• Removable window coverings such as curtains, draperies, and blinds
• Portable microwaves and dishwashers
• Carpeting not included in building coverage
• Washers and dryers
• Clothing, furniture, and electronic equipment