If you live in a flood zone, then you might have a requirement to buy flood insurance. Many people buy plans that are backed by the National Flood Insurance Program (NFIP), the U.S. government’s insurance pool that makes flood insurance attainable for those who need it.
Because of the unpredictability associated with flooding, even properties that have never flooded before could still fall victim to this peril. Water damage is also a highly expensive hazard to fix. That’s why flood insurance is a critical benefit for nearly anyone, especially those who know their homes face a high flood risk.
One of the two essential components of flood insurance is structure coverage. It will help you rebuild your home after flooding occurs. However, this coverage is not unlimited. It’s important to review your plan’s terms with your agent to make sure your structure coverage is adequate for your property.
The Coverage Within NFIP Flood Insurance
When you buy an NFIP-backed flood insurance policy, the structure coverage within will be tightly regulated. However, the plan can cover a variety of items, including:
- The building and its foundation
- Detached garages
- Carpeting, paneling, permanently installed shelving
- Permanently installed appliances like stoves, dishwashers and refrigerators
- The electrical wiring
- HVAC equipment, furnaces, water heaters
Certain items will have coverage under your flood policy’s contents coverage, which is a separate part of your plan. Items covered under your contents plan might include washers & dryers, rugs and portable microwaves and dishwashers.
Your structure coverage will include limits, too. These will impact the situations where you qualify to make a claim on your plan, and how much compensation you will receive.
- NFIP structure coverage pays based on your home’s replacement cost value, which is the value needed to rebuild your home at today’s prices. This is not necessarily the cost you paid for your house, but rather the cost of construction The maximum available coverage limit is $250,000.
- NFIP plans include deductibles, which are dollar amounts that are your responsibility to pay for damage costs. So, if you have a $1,000 deductible and $25,000 worth of structure damage, you pay $1,000 for repairs and your insurance pays the remaining $24,000.
- Plans might not cover certain items like outdoor fixtures and landscaping.
- Your policy will not cover water damage from slow leaks, normal wear & tear and preventable damage.
If you are unsure about how to design your flood insurance’s structure coverage to your advantage, then just call one of our agents. We understand all of the ins and outs of policies in the marketplace, and we’re here to help you design your plan in the ways that are best for you. Contact Raymond Longoria Insurance today at (888) 296-0345 for a free quote!