Flood Insurance Policies

Chicago Insurance Advisors

Flood insurance is insurance coverage specifically for property loss from flooding. Whether or not an area is a risk factor for natural floods is determined by viewing a topographical map that notes floodplains, lowlands, and floodways.

About 20% of homes at risk for floods have flood insurance. Some homeowners do not realize that flood coverage is separate from their home policy.

Most policies for flood insurance are part of the National Flood Insurance Program administered by FEMA. These policies are sold by insurance agents in areas affected by the NFIP. A location must adhere to flood-related guidelines to qualify for NFIP. Some insurance carriers provide this insurance outside of the NFIP, but the policies are expensive.

NFIP flood policies provide up to $250,000 in coverage for damages, and up to $100,000 in coverage for personal belongings. That may seem like a lot, but it may actually not be enough to cover catastrophic damages. To bridge the gap between NFIP coverage and the actual value, homeowners can buy excess coverage protection. When considering excess coverage, a homeowner must review the NFIP policy to determine what it covers. For example, a policy might not cover detached garages or expensive personal property.

The basic coverage for floods includes building coverage and content coverage. Building coverage is for damage to the home's floors and walls. Content coverage applies to items in the home, like clothing and furniture.

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