Flood Insurances are typically covered by the National Flood Insurance Program. A flood can be considered a general or temporary condition occurring on two or more acres of land, or affecting two or more properties. Flood insurances typically have a queue of 30 days, before entering its coverage period, to avoid insurance solicitations only when a flood event is expected. Floods can occur in the following forms:
Overflow of inland water
Unusual accumulation of runoff water
Water exceeding normal levels
Flood Insurance Mandatory Requirements
Flood insurances are required on high risk areas as determined by the NFIP, and strongly recommended on moderate-to-low risk areas. However, flood insurance is limited on basement and areas below the lowest elevated floor depending on the flood zone and date when it was built. Limited coverage might also be suggested on crawl spaces, enclosed areas beneath elevated buildings and other low-lying areas.
Flood Insurance Coverage
Flood Insurance claims average over the last ten-year period have been over $30,000. Flood insurance policies are dependent on several factors but most of them will cover damage to your property and personal belongings. For businesses, Flood Insurance will pay up to $500,000 for the building and $500,000 for the contents.
The building and its foundation
Mechanical and electrical components
A/C units, heating equipment
Permanently installed wall divisions
Flood Insurance Limitations
As any insurance, Flood Insurance coverage has also some limitations that you must know, before starting a new insurance period.
Damage or moist that could have been avoided by the building owner.
Currency, money and stock certificates
Items located outside the covered structure
Temporary housing expenses
Economic loss caused by business interruption