Homeowner’s insurance rarely covers damage from floods. Instead, it typically covers damage from burst pipes, rain, or other forms of water damage. If you live in a designated flood zone, you are probably required by your mortgage lender to buy flood insurance, but it may be worth having – even if you’re not in a high-risk area. About 25 percent of flood claims are for homes not in a flood plain.
While flood insurance may not cover everything, it does offer coverage for your personal possessions and your home’s physical structure.
A NFIP flood insurance policy will cover the cost to rebuild your home or the actual value of your home, whichever is less. This includes the home and foundation, HVAC system, plumbing, eletrical, detached garages, carpeting, and more. Items like appliances, clothing, furniture, and valuables are covered by a personal property policy.