What Flood Insurance Does and Does Not Cover

Even if your clients don’t live in an area prone to flooding, they may want to consider taking out a policy. If your clients are hit by a flood without flood insurance, the damage can be devastating. Flooding is the most common and costly natural disaster and can happen anywhere. Just 1 inch of water can cause up to approximately $25,000 in damage. When considering the policy, it’s important for your clients to know what coverage to expect. 

Share the following information with your clients when they ask about flood insurance coverage:

What’s Covered

  • Essential systems: Electrical and plumbing systems, furnaces, water heaters, central air conditioners, heat pumps, and sump pumps, cisterns and the water in them, fuel tanks and the fuel in them, solar energy equipment, water tanks, and pumps.
  • Appliances: Refrigerators, ranges, and built-in appliances such as dishwashers. Washer/dryers machines, portable window air conditioners, and freezers are usually covered.
  • Carpeting and window treatments: Policies typically cover permanently installed carpeting over an unfinished floor, window blinds and curtains.
  • Paneling, wallboard, bookcases, and cabinets: A policy will pay only for the ones that were damaged.
  • Foundation walls, anchorage systems, and staircases: There’s an exclusion for loss caused directly by earth movement even if the earth movement is caused by a flood.
  • A detached garage: You can use up to 10% of your total building coverage toward your garage, but that amount will be subtracted from the total amount of building coverage.
  • Personal property: Clothing, furniture, and electronic equipment (only if they’re not stored in the basement).
  • Certain valuables: A policy may cover items such as original artwork and furs, up to $2,500 in value.
  • Other coverage: Some events are covered even if they’re not necessarily floods, like groundwater seepage and mudflow. This can occur from a neighbor’s above-ground swimming pool collapsing, causing the water to flow into your home, or a water main break that damages your home and at least one other in your neighborhood.

What’s Not Covered

Flood insurance has eligibility requirements and numerous exclusions such as:

  • Damage caused by moisture, mildew, or mold that has been neglected by the property owner or which is not attributable to a flood
  • Damage caused directly by earth movement even if the earth movement is caused by a flood 
  • Additional living expenses, such as temporary housing, while the building is is unable to be occupied
  • Loss of use or access to the insured property
  • Financial losses caused by business interruption
  • Property and belongings outside of an insured building (trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools)
  • Currency, precious metals, and valuable papers such as certificates
  • Most vehicles.

About AmSuisse

Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.