A few preliminary questions a potential client may ask are ‘Why do I need flood insurance?’ and ‘What would my flood insurance policy cover?’. After explaining the flood risks in their area, use these talking points to break down what is and isn’t covered by a typical flood insurance policy for homeowners.
What does flood insurance protect? You can purchase coverage to help protect your home, your personal belongings, or both.
Building property coverage. This includes the physical structure of your home and its foundation; plumbing and electrical systems; central air and heating systems; attached bookcases, cabinets, carpets, and paneling; a detached garage; well water tanks and pumps and any solar energy equipment. This policy does include a coverage limit of $250,000 for damage caused to the building.
Personal contents coverage. This includes clothing, furniture and electronics; curtains; some portable appliances; freezers and the foods within them; carpets installed over wood floors; washer and dryer; and certain valuables, like art (up to $2,500). The coverage limit for a personal content policy is $100,000.
What isn’t covered? There are specific items not covered by a building or contents coverage policy. These include:
- Damage caused by moisture, mildew, or mold that could have been avoided by the property owner.
- Temporary housing and additional living expenses incurred while the building is being repaired or is unable to be occupied.
- Property outside of an insured building. For example, landscaping, wells, septic systems, decks and patios, fences, seawalls, hot tubs, and swimming pools.
- Currency, precious metals, stock certificates and other valuable papers.
- Cars and most self-propelled vehicles, including their parts.
- Personal property kept in basements.
Work with your potential clients to determine what kind of coverage is right for them. You can also refer to NFIP’s Summary of Coverage for further information about what may or may not be covered by a typical flood insurance policy.