Standard Flood Policies

Living on a flood plain creates a strong need for flood insurance.

Standard-rated flood policies insure homes and buildings in high-risk flood zones. These policies are the single flood insurance option for homeowners, businesses and renters in these areas and are only available through an insurance agent.

What's Covered

Coverage is provided for the building and its foundation, but not for the contents. However, a separate policy to cover the contents can be purchased. It's also important to note that flood policies do not cover the land beneath the building.

National Flood Insurance Program

Unlike other types of insurance, the financial backing for standard flood policies rests with a federal program known as the National Flood Insurance Program (NFIP). It offers flood insurance to homeowners, businesses and renters.

Property Claims

If your property is damaged in a flood, the standard flood policy will pay the claim according to the terms of your policy. The amount will be determined either by the Replacement Cost Value (RCV) or the Actual Cash Value (ACV).

Important Information

It's important to understand that standard homeowners insurance does not cover damage from a flood; only flood insurance does. Also, there is a 30-day waiting period from the date of purchase for the flood policy to take effect.

References

• FEMA: National Flood Insurance Program
• Floodsmart.gov: Coverage From the NFIP
• National Association of Insurance Commissioners: Flood Insurance

Resources

• What Could Flooding Cost Me?: Interactive Tool