What Does Flood Insurance Cover?

The City of Greensboro and surrounding areas within Guilford County have a number of waterways that may be subject to flooding during and after heavy rains, as can be seen here on this local area regulated flood plain map. Floods represent some of the most damaging and costly disasters to which property owners can be exposed. Being aware of potential risk areas and having proper protection in the way of flood insurance are important aspects of having a home or business in affected areas. Here’s an informative map put out by the NC Flood Risk Info System that lets you click on your county and enter any address to determine specific flood risk levels.

How Flood Insurance Works

Flood damage is a peril not covered within a general homeowner’s insurance policy. Flood insurance coverage must be purchased separately from your homeowner's policy. While this type of insurance is sold through your insurance agent, it’s actually made available only through the federal government’s National Flood Insurance Program (NFIP). It cannot, however, be purchased directly from the government, but must be obtained through an insurance company. Premiums do not change from one company to the next, and the specific rates are determined by the NFIP in accordance with certain factors such as flood risk level for a specific area plus the date and type of building construction involved. In most cases, there’s a 30-day waiting period after issuance before the coverage is active and premium payments must be made for an entire year.

What’s Covered

Coverage provided by flood insurance is spelled out on several government websites, including here. Coverage is applied to both buildings, and the personal possessions found within them, with certain exclusions such as currency, most valuable papers (such as stock certificates) and precious metals. Building and personal possession coverage is treated separately, with each having its own deductible amount.

Detached garages are covered (up to 10% of building coverage), however, other detached structures require a separate policy. Building coverage includes electrical, plumbing, major appliances, window blinds and permanently installed carpets, paneling, cabinets and bookcases.

Personal possessions coverage includes:

• Clothing
• Furniture
• Electronic equipment
• Washers and dryers
• Portable appliances
• Carpets not covered under building coverage
• Freezers (including food stored within)
• Original artwork, up to a maximum value of $2,500

Items not covered include most vehicles, items located outside the insured building like pools, fences, decks, landscaping, etc.