In today's video, we'll talk about flood insurance coverages on structures. What does a standard flood insurance policy cover? Can you do something about the policy you have? Is one insurance company different from the other when it comes to providing coverage for buildings, structures, or any kind of property for that matter?
First, let's go back to what flood is. When flooding happens, it's because a large amount of water impacted at least two parcels of land in a community. This means that your home isn't the only property that will be hit, but also what's around it. Now, it may be that the structures other than your main house are covered by your homeowners insurance policy, but remember that floodings will be covered in a separate policy.
A common question that property owners would then ask: how about the property I have other than my house and how do I get it covered from flood damage?
Now, it's important to note that this generally depends on your flood insurance provider. So, let's talk about the coverages that the National Flood Insurance Program (NFIP) from the federal government or the Federal Emergency Management Agency (FEMA) and the private flood insurance market.
Coverage for Other Structures
NFIP Coverage
Now, let's understand first what things are covered by your flood policy with the National Flood Insurance Program (NFIP). You'd know by now that the National Flood Insurance Program (NFIP) provides coverage for properties, structures, or buildings for a max of $250,000. If you're doing a policy for a commercial building then this amount can go up to $500,000. This is with a $100,000 coverage on contents or personal property.
The only other structure that's going to have additional coverage is a detached garage outside of your primary main building listed in the policy. Attached garages are already included with your policy. Note, detached garages are only included if it used for either parking or storage.
This means that when it comes to the National Flood Insurance Program, any other detached structures won't be included in your policy's flood coverage. If you're looking to have these detached buildings, you have to get separate flood insurance for them.
Private Market Coverage
When it comes to Private Market, you can list multiple structures on a single policy. This means that you get to include detached garages, sheds, barns, or basically anything that's included in your property as an extension of your primary residence.
The private flood insurance market has no coverage limits. This means they're willing to have no maxed amount for their coverages on flood losses. You can get up to $10,000,000 on building or structures coverage. Yes, this includes all other buildings you listed in the policy even if they're not your primary residence. Private flood insurance coverage also provides up to $1,000,000 when it comes to personal items impacted by flood damage. They will also include replacement costs coverage, loss of use, and additional living expenses.
So, if you have any questions on flood insurance rates, flood risks, things to do when it comes to the purchase of flood insurance, flood maps, or anything about flood. Please feel free to reach out. Remember, we have an educational background in flood mitigation and we want to share this knowledge with you, so you too can be prepared when crap happens. Click the links below to get started.
