What is Covered by Flood Insurance?

Many people believe that their homeowners insurance policy will cover flooding, but this is not true. Floods and earthquakes are common exclusions from homeowners policies and a separate flood insurance policy must be purchased if you want protection against this natural disaster.

Is flood insurance necessary in the Houston area? Flooding has been a historically-documented hazard in and around Houston. But floods are not limited to high-risk flood zones and can happen anywhere.

What exactly does flood insurance cover? A flood policy covers physical damage to your property and belongings, including:

• Your home’s structure and foundation
• Electrical, plumbing, cooling and heating systems
• Detached buildings, such as garages and sheds
• Personal belongings, such as furniture, clothing, electronics, appliances etc.
• Debris removal

Most insurance providers will allow you to choose between actual cash value coverage (the cost to replace items at their depreciated value) and replacement value coverage (the cost to replace items with new property, regardless of their current value).

Of course, it’s also important to know what is not covered by flood insurance. These exclusions generally include:

• Flooding that occurs within your home, such as burst pipes or an overflowing toilet (these instances are often covered by homeowners insurance)
• Reimbursement for trees, gardens and other landscaping
• Mold or mildew damage that could’ve been prevented
• The value of currency, stock certificates, precious metals and other valuable papers
• Alternative living expenses (hotel rooms) or business interruption (for a home-based business)

Bear in mind, your flood insurance policy won’t kick in right away. Rather, there’s a 30-day waiting period before it takes effect. So don’t wait until an imminent flood has been predicted to run out and buy flood insurance. Buying it now helps give you the peace of mind knowing that you’re covered if a flood damages your home later on.

Our top goal is to help protect you and your family. Call G & H Financial Insurance Services, Inc. at 281-395-5497 for more information on Houston flood insurance.