What Does Flood Insurance Cover for Home and Condo Owners?

Whether your clients are homeowners or condo owners, flood insurance is crucial, but the specifics can vary. Knowing what their needs are helps you offer the coverage that's best for them.

Here's a breakdown of what flood insurance covers, and what it doesn't, for condo and homeowners.

Flood Insurance Coverage For Homes

Flood insurance for homeowners typically includes coverage for both the structure and personal belongings. Structure coverage includes damage to the building's foundation, walls and electrical systems. It also covers appliances like furnaces and water heaters.

Personal belongings coverage protects items like furniture, clothing and electronics, but there are limits on high-value items like artwork or jewelry. High-value items may need additional coverage.

Flood Insurance Coverage For Condos

Condo owners need to understand that their flood insurance usually covers the unit's interior—like drywall, flooring, and cabinets—rather than the building's exterior or shared spaces.

However, coverage for improvements made to the unit might be subject to policy limits.

Key information about flood insurance coverage for both home and condo owners

Deductibles and Limits

Be clear on the deductible amounts and coverage limits, as these can impact out-of-pocket costs in the event of a flood.

Exclusions

Understand what's not covered, such as damage caused by a sewer backup, which often requires separate coverage.

Flood Zone

Coverage requirements and options might vary based on the flood zone where the property is located.

Help your clients understand their flood insurance coverage options

Regardless, it's critical that you help your clients understand that coverage for contents must be purchased separately from building coverage, and that both policies have their own separate limits and deductibles.