Flood Insurance

A flood policy starts to work when a flood strikes. If a flood happens while one is covered, the insurance provider will pay out for the damage, up to the coverage limits. Floods can be a disaster, so these costs can be overwhelming without this protection in place.

Flood insurance policies often have a variety of different coverage limits depending on the kind of coverage chosen. For example, a policy might cover $100k in property damage, $20k in personal property damage, and may also have some other protections built in such as the provision of lodging while a property is being repaired or rebuilt. In the case of commercial flood policies, business interruption coverage can also be included.

A flooding policy provides separate protection than that of simple water damage. Water damage can happen when, for example, a pipe in the kitchen bursts. While the room may be “flooded,” it’s still not classified as a flooding. Flooding is only considered to happen when it is due to some kind of a natural disaster, like with a severe storm or a body of water overflowing its banks, for instance.

There are many regions where flooding is more common and, as such, this coverage would be very critical.