What is Flood Insurance?
Flood defined in simple terms is an excess of water on land that is normally dry. This can be caused by overflow of water bodies or excessive torrential rains that start flowing through walls across the ground surface.
The official definition used by the National Flood Insurance Program to cover direct physical loss by "Flood" is: "A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from:
- Overflow of inland or tidal waters;
- Unusual and rapid accumulation or runoff of surface waters from any source;
- Mudflow (defined as " A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water…"); or
- Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above."
Flood damages are not covered by the basic homeowners policy. Coverage can be purchased on a separate Flood Policy.
Flood Insurance can be purchased through the National Flood Insurance Program at KGS Insurance. We would need to determine the eligibility of your building location in the program as it relates to the flood maps and zones. If you are eligible, you can choose to purchase just building coverage or building and contents that are purchased separately.
You can also choose your deductible and they apply separately to the building and contents.
In the event of a loss, coverage is paid at replacement cost (if eligible) or actual cash value up to the policy limit for building coverage. It is not a guaranteed replacement cost policy. Personal property coverage is paid at actual cash value.
What is covered by Flood Insurance?
- Building Property Coverage insures the building, foundation, main electrical and plumbing systems and mainly permanently installed floor and wall coverings and blinds, and debris removal.
- Personal Property Coverage insures your personal belongings, certain valuables, and portable microwaves, dishwashers, and washer/dryers.
What is NOT covered by Flood Insurance?
- Flood Insurance does NOT cover mold and mildew damages, additional living expenses, and property outside of the home.
- It also has LIMITED coverage on levels that are below ground to include basements and crawlspaces. Areas below ground are covered for foundations, main systems for heat and water and washer/dryers, but finishes on the walls and floors and personal property are NOT covered below the lowest elevated floor.
Get your policy today before it's too late!