Since standard homeowners insurance doesn’t cover flooding, it’s important to have protection from the floods associated with hurricanes, tropical storms, heavy rains and other conditions that impact the U.S.
In 1968, Congress created the National Flood Insurance Program (NFIP) to help provide a means for property owners to financially protect themselves. The NFIP offers flood insurance to homeowners, renters, and business owners if their community participates in the NFIP. Participating communities agree to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flooding. Find out more about the NFIP and how it can help you protect yourself.
Flood insurance protects two types of insurable property:
Building and Contents
The first covers your building, the latter covers your possessions; neither covers the land they occupy.
Building coverage includes:
The insured building and its foundation
The electrical and plumbing system
Central air conditioning equipment, furnaces, and water heaters
Refrigerators, cooking stoves, and built-in appliances such as dishwashers
Permanently installed carpeting over unfinished flooring
Contents coverage includes:
Clothing, furniture, and electronic equipment
Portable and window air conditioners
Portable microwaves and dishwashers
Carpeting that is not already included in property coverage
Clothing washers and dryers
The two most common reimbursement methods for flood claims are:
Replacement Cost Value (RCV) and Actual Cash Value (ACV). The RCV is the cost to replace damaged property. It is reimbursable to owners of single-family, primary residences insured to within 80% of the buildings replacement cost. All other buildings and personal property (i.e. contents) are valued at ACV. The ACV is the RCV at the time of loss minus physical depreciation. Personal property is always valued using the ACV.
Talk with Waynesborough Insurance today to identify the best combination of coverage, value and price just for you.