Flood Coverage

What is a Flood?

Flood insurance covers direct physical loss caused by “flood.” In simple terms, a flood is an excess of water on land that is normally dry.  Here’s the official definition used by the National Flood Insurance Program.  A 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*; 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.

Choosing the amount of your deductibles is an important decision.  As with car or homeowners insurance, choosing a higher deductible will lower the premium you pay, but will also reduce your claim payment.  You can normally choose different deductibles for Building Property and Personal Property coverage.  The deductibles will apply separately to Building Property and Personal Property claims.Your mortgage company can require that your deductible is no more than a certain amount.  Review the Declarations Page in your flood insurance policy for amounts of coverage and deductibles.  Talk
with your insurance agent, company representative, or lender about raising or lowering deductibles.ticipated cyclical levels that result in a flood as defined above.”

What is Covered by Flood Insurance- and What’s Not

Generally, physical damage to your building or personal property “directly” caused by a flood is covered by your flood insurance policy. For example, damages caused by a sewer backup are covered if the backup is a direct result of flooding. However, if the backup is caused by some other problem, the damages are not covered.