Standard property insurance covers many catastrophic events that can cause financial hardships, but floods are often excluded from coverage. In order to get coverage for flood-induced damage, you need to buy flood insurance. And depending on where you live, flood insurance could be a must-buy.

What Does Flood Insurance Cover?

By insurance standards, a flood must either affect a minimum of two properties or cover at least two acres of land. The cause of flooding also matters – flood insurance will offer coverage for floods due to broken dams, storms, and blocked drainage systems.

Once the cause of damage is deemed to be from a flood and the flood’s source is covered, your flood insurance will reimburse you. This includes the property itself and the damaged inventory.

It will also cover mold or mildew resulting from the flood, provided you took reasonable action to eliminate it following the flood.

Coverage amounts vary, but usually, flood insurance offers $500,000 coverage for the property and $500,000 for contents. However, you can purchase excess coverage that will rebuild properties of higher value, and this will include business interruption protection.

What Will Flood Insurance Not Cover?

In general, flood insurance won’t offer coverage for items that another type of insurance would offer. For example, it won’t cover financial losses resulting from business interruption – that is coverage you’d get through a business owners policy

And not every item is covered by virtue of it being on your property. This includes any damaged company vehicles. Flood insurance will also not cover damages done to the landscaping on your property.

Flood insurance also will not cover pre-existing mold or mildew and may not provide coverage if it is determined that you did not take the proper action to eliminate it.

Why Should I Buy Flood Insurance?

Your mortgage lender may require it, especially if federally regulated and you live in an area prone to flooding. 

If you are considering flood insurance, it’s good to determine the flood risk in your area. If you live in a high-risk area, you can obtain flood insurance through a private insurer or the National Flood Insurance Program (NFIP). Your coverage should begin within 30 days of signing up.

Find the Coverage You Need Today!

At Remco Insurance Services, we ensure you’re always protected. We can help you find numerous policies to help people have a safety net when the worst happens. Contact us today at (215) 357-7878 or text (267) 692-8296 for more information.