This week we are talking a lot about flood insurance and the National Flood Insurance Program because the Federal Emergency Management Agency (FEMA)  has changed its rates in the Flood program.

 

Here are the highlights of the changes:

• FEMA’s revamped federal flood insurance rate system took effect Oct. 1, bringing historic changes to longstanding ways of figuring premiums.
• High-value homes in the highest-risk areas would experience the largest increases, while low-value properties in less flood-prone areas should see price decreases.
• New policies are now subject to the new rate structure, while existing policies that renew on or after April 1, 2022 will see the rate changes.

What Does Flood Insurance Cover?

According to FEMA, the following items are considered part of the building’s structure and are covered:

• The insured building and its foundation
• The electrical and plumbing systems
• Central air conditioning equipment, furnaces, and water heaters
• Refrigerators, cooking stoves, and built-in appliances such as dishwashers
• Permanently installed carpeting over an unfinished floor
• Permanently installed paneling, wallboard, bookcases, and cabinets
• Window blinds
• Detached garages up to 10% of building property coverage (detached buildings other than garages require a separate building property policy)
• Debris removal

 

What Doesn’t Flood Insurance Cover?

As specified by FEMA, lots of important and expensive things are not covered by flood insurance. You’ll have to purchase additional personal property or contents coverage if you are worried about the cost of replacing the following items:⁷

• Personal belongings such as clothing, furniture, and electronic equipment
• Curtains
• Portable and window air conditioners
• Portable microwave ovens and portable dishwashers
• Carpets not included in building coverage (see above)
• Clothes washers and dryers
• Food freezers and the food in them
• Certain valuable items, such as original artwork and furs (up to $2,500)

 

Additionally, neither building nor personal property flood insurance will cover the following:

• Damage caused by moisture, mildew, or mold that could have been avoided by the property owner
• Currency, precious metals, and valuable papers such as stock certificates
• Property and belongings outside of a building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools
• Living expenses, such as temporary housing
• Financial losses caused by business interruption or loss of use of insured property
• Most self-propelled vehicles, such as cars, including their parts

 

Interested in finding out more about Flood Insurance? Give us a call or send us an email! We are here for you.