When water threatens your home, having a flood insurance policy isn’t enough—you need to understand what that policy actually protects. Many homeowners are unaware of what is and isn’t included, especially when it comes to basements, belongings, and exclusions that apply in real-world situations.
This guide explains what’s covered, what isn’t, and how your policy applies so you can feel more confident in your protection decisions.
Flood insurance is administered by FEMA through the National Flood Insurance Program (NFIP), which defines a flood as “a temporary condition where water covers two or more acres or affects two or more properties.”
That definition affects what qualifies as a covered event. For example:
Most NFIP policies include:
Unlike federal disaster assistance, which is limited and only available under certain conditions, flood insurance provides financial protection if your claim qualifies under the NFIP definition.
Flood insurance generally covers:
To be covered, these systems must be permanently installed and connected. If you store an appliance in the basement that isn’t hooked up, it’s not covered.
Damage caused by earth movement, even when triggered by flooding, is excluded. This includes settling or cracking of the foundation due to soil erosion.
If you have a detached garage, up to 10% of your building coverage can be applied—but it’s subtracted from your main structure’s total.
Example: $250,000 in coverage - $20,000 used for garage = $230,000 remaining for your home.
The NFIP has strict guidelines for items in basements. Only a few powered appliances are covered, and personal property is largely excluded.
Covered (if connected to power):
Not covered:
There’s also a $2,500 cap per claim on high-value items like original artwork or furs. And location matters—items stored in a basement are not covered under content provisions.
If you operate a home-based business, inventory may be covered if stored above ground. Inventory or equipment kept in a basement, regardless of value, is excluded.
These exclusions apply even when the damage occurs due to flooding.
After a qualifying flood event, a licensed adjuster will:
If you find additional damage later (for example, behind walls or under flooring), you can file a supplemental claim with updated documentation.
Flood policies carry separate deductibles for building and contents.
Example: $5,000 deductible for structure + $5,000 for contents = $10,000 total out-of-pocket before payout.
Flood insurance comes with a 30-day waiting period for new policies and for any increase in coverage.
If you increase your contents coverage mid-policy (e.g., from $50,000 to $100,000), the additional $50,000 won’t be active until 30 days after the change takes effect.
There are exceptions to this rule—such as when flood insurance is required immediately for a newly purchased home—but they are limited.
If both wind and flooding affect your home during the same event, coverage is split between policies:
If wind damage allows water to enter the home, claims may require detailed evaluation to determine what portion is covered by each policy.
For condo owners, the situation is different. Stored personal belongings in common garages are generally not covered. Basement storage follows the same NFIP exclusions as single-family homes.
Flood insurance can offer significant protection—up to $350,000 in combined structure and contents coverage. That’s far more than the average federal disaster assistance grant, which is typically only $7,000 and often distributed as a loan that must be repaid.
Reviewing your policy now helps you understand:
If you’ve never reviewed the fine print of your flood insurance policy, now is the time. You may find that critical areas—like basements, business equipment, or temporary housing—aren’t covered the way you assumed.
Start by:
The more you understand your policy today, the more confident you’ll feel about your protection tomorrow.
Schedule a free consultation with a licensed flood insurance expert to review your coverage and avoid surprise exclusions.