Flood Insurance

Picture a normal house with the automatic sprinkler system on. This sprinkler system has been around for decades and appears to be slightly rusted. All of a sudden, one of the old sprinkler heads cracks and falls off. Water from the broken sprinkler gushes into the open window of the house. After a few minutes, a few inches has already entered the house and damaged some of the household items. A couple of inches of water damage could add up to thousands of dollars in repair costs. Most homeowners insurance polices will not cover this type of damage.

Flood insurance is the best way to protect against this scenario. This type of insurance policy protects against water accumulation in a building. The Federal Government also backs the policy. Homeowners, renters and businesses could all benefit from flood insurance. If a house is near a flood-prone area, this insurance is required with a mortgagee. However, floods can still happen to homes that are not in flood-prone areas. Therefore, to protect a home and the belongings, everyone should consider signing up for this insurance. The details of this policy are part of the National Flood Insurance Program.

There are two different types of coverage. One version covers flood damage. Another version covers non-flood water damage from incidents such as a bursting pipe in the basement. There are some unique benefits of this policy. Owners can be reimbursed for losses of the structure of up to $250,000. There is also a reimbursement for household contents, such as appliances and the carpet, of up to $100,000.

Whether there is a major hurricane that floods the house, or water from melting snow that damages the property, this type of insurance can be very important.

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