You were told your home would never flood but now you are looking at 4 feet of water in your home.



It was recently determined that roughly 1 inch of water can cause $21,000 in damage.

So as you can imagine 4 feet of water could be a total loss.

This is exactly what happened to multiple customers of ours after the flooding in Centre Alabama in 2019.

While these residents had the coverage to replace their homes not everyone is as lucky.

Today we want to discuss what is flood replacement cost and what is actual cash value?

First of all replacement cost is the amount of money an insurance carrier feels it would take to rebuild your home.

So then what flood actual cash value? This is the replacement cost-depreciation.

As you can imagine after depreciation this can leave a pretty big difference.

Most of the time actual cash value does not come close to being enough coverage to rebuild your home. Time and time again we have seen property owners have to take out loans to cover the difference just to get their home rebuilt.

This is exactly what happened to many flood victims in the Tulsa Oklahoma area after the 2019 flood. Many of these residents only insured their properties for the amount they owed the bank. The problem is that this didn't give most property owners half the coverage they needed.

So what if full replacement coverage is not available?

This is common with National Flood Insurance Program policies as residential policies max out at $250,000.

In order to make sure you get replacement coverage up top $250,000 you need to follow the 80% rule.


This means you insure the home for at least 80% of the replacement coverage or $250,000.

What about private flood insurance companies?

Now each company has a different guideline. Some go off the 80% rule and some don't. The benefit is private flood insurance can offer much more coverage some times into the millions.

So if you have questions about flood replacement coverage then click here.

If you want to learn more about flood insurance then make sure to check out our podcast or our YouTube channel where we do daily flood education videos.

Remember we have an educational background in flood mitigation. This means we can help you understand your flood risks, flood insurance, and mitigating your property long term.


Contact Us

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation


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