Flood Insurance: How Does It Work? 

Mother Nature often brings unwelcome surprises. Whether you’re a homeowner, renter or business, natural disasters should be among your top concerns, as these incidents are typically beyond your control, but may still have dire financial ramifications. Understanding how to retain appropriate insurance, such as for floods, should be a top priority.

Who Needs Flood Insurance?

Flood insurance is an essential investment for many individuals, families and businesses, but they may not even be aware of their needs. That’s because some people are unaware that floods are often explicitly excluded from coverage in standard homeowners, renters and commercial property insurance policies. As such, if rising waters, such as those caused by heavy precipitation or rapid snowmelt, cause property damage, you’d be on your own without additional flood insurance.

What Can It Cover?

Flood insurance capabilities may vary somewhat, but many policies include multifaceted financial protection that can limit out-of-pocket losses and expenses in the wake of these natural disasters. Specifically, your policy may consist of the following components:

• Structural coverage can help pay to repair or rebuild your home or commercial property if physical elements, such as its walls, floors, foundations and electrical systems, are damaged by floodwaters.

• Personal property coverage may assist with losses involving the contents of insured structures, such as furniture and electronics.

How Are Rates Determined?

Your flood insurance premiums may be based on several criteria, including the following:

• Structural specifications (e.g., number of floors, materials used and estimated rebuild cost)

• Location

• Lot details (e.g., elevation and topography)

• Value of insured belongings

• Deductible

• Coverage limits

How to Get Coverage

Flood insurance is often available through the Federal Emergency Management Agency’s National Flood Insurance Program. Alternatively, many private insurers have entered the flood insurance market in recent years, potentially offering policies with greater coverage limits and other customization opportunities.

At Thornburg Insurance Agency in Huntington, West Virginia, we can help you explore your flood insurance options and find the right coverage. Contact us today to begin.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.