What does Florida flood Insurance Cover?


What does Florida flood Insurance Cover?

What does Florida flood Insurance Cover?

Photo Credit: Allstate

After your home or business may have flooded, you may have a series of questions about what is covered under your Florida flood insurance policy. Florida flood insurance is often a separate insurance product for homeowners, and it provides coverage for a few different types of loss if a home is to experience water damage. You might be surprised to know what is actually covered in the policy versus what isn’t.

To receive coverage for flood insurance, your home needs to be in an area that has experienced some type of flooding before. Flood conditions typically occur when water reaches over the minimum of 2 acres of land that is typically considered dry. If the water in your area has damaged two or more properties in your neighborhood, it’s likely that you qualify for some type of flood insurance. 

The source of the water also comes into play for qualification. The floodwaters need to come from either some type of mud flow, unusual accumulation of surface water runoff or from unusual tides. Damage caused by the  previous flooding in the area needs to have affected sewers, toilets and sinks as well. If it hasn’t then the flooding is often not deemed destructive enough for homeowners to acquire this type of insurance.

Most Florida flood insurance policies are limited at around $250,000 for costs on the property as well as $100,000 on personal property within your home. Building coverage acts in addition to your current homeowners insurance policy and the personal property coverage fills in the gaps of your home insurance coverage as well. It’s important to consider your current insurance policy before you even look at any type of flood insurance. What you may be surprised to know is that under most insurance policies the following are not covered:

  • Financial loss due to business interruption
  • The loss of precious metals and valuables like stock certificates
  • The loss of vehicles
  • The loss of use for access to any part of the insured property.
  • The loss of living expenses due to the need to rent during housing construction. 
  • Coverage losses due to earthquakes or floods caused by earthquakes and plumbing accidents.
  • Damage to any part of your property due to mildew, mold or moisture which are not attributed to the flood or that may be attributed to improper cleanup. 

The coverage in flood insurance improves  the level of coverage that you have for personal property loss. Many residents keep some of their personal items in the basement and your current insurance policy may not cover property that is located below the lowest elevated floor. Having flood insurance can help to protect these items.

Personal property that you keep in the basement could also include items such as your laundry room, furniture for a living room in the basement or a children’s playroom. Making sure that all of these items are categorized under your insurance and that there is some level of protection for these valuables in your basement can be very important. 

Most flood insurance coverage will provide you with compensation for some of these items but in most cases it is a cash value basis for the belongings in your basement. If you keep items of sentimental value, these will often be assessed on the cash value basis for replacement at the time of the flood. 

If you have a home business and you work out of the basement there may not be the chance to see coverage for the loss of living expenses or the need for a temporary office as your home office is being repaired. Asking for additional items within your flood insurance could be crucial especially if the bulk of your business operations take place in the basement. 

Most Florida flood insurance policies only act as a gap for insurance policies. They also usually provide a very basic level of coverage. As purchasing these types of insurance policies are not an overly  consumer friendly process, it could be wise to seek the assistance of an insurance policy provider or insurance attorney. Going through the coverage that you may need with an expert can help to make sure you are receiving the ideal insurance coverage for your needs. 

Making sure that you have some type of coverage in the event of flood damage can be very important. The process of submitting a claim to your insurance policy without any type of flood damage insurance could be a process that is extremely difficult to manage. Submitting a claim may be completely impossible depending on the level of coverage that you have. Be sure to speak to your insurance attorney or advisor before you submit a claim as well as if you were to have any questions about your current insurance policy. Feel free to contact us today for a free consultation on your coverage or filing for a claim.