The Facts about Flood Insurance

Flood insurance is extremely valuable for people living in areas prone to storms or levee breaks. Find out more about what flood insurance covers and if it is right for you.

The recent spate of hurricanes, tropical storms and other weather conditions in the United States over the last few years has caused many companies to rethink their policies for providing insurance for the home that covers flood damage. Today, flood damage protection is a separate policy instead of one that is standard when you receive free home insurance quotes.

Most flood coverage is provided by the National Flood Insurance Program, a coalition of insurance providers. Flood insurance helps to fill the gap that standard homeowners insurance policies will not cover. With flood insurance, your personal items such as furniture, clothes, art, jewelry and other valuables are covered in case they are destroyed during a flood caused by heavy rains, tropical storms or other natural disasters.

When you get home insurance quotes for flood insurance, you will either see coverage in actual cash value or replacement cost of the item. Cash value is the replacement cost of an item minus depreciation for wear and tear. This can include items such as rugs, furniture, appliances and other personal items. Flood insurance policies will pay the replacement cost of other items if the coverage is for a single family dwelling that is occupied for 80 percent of the year and with coverage that equals at least 80 percent of the replacement value of the house.

If you live in an area that is prone to flooding such as the Gulf Coast, it's a good idea to research home insurance online and find out more about flood insurance. This coverage can prove to be extremely valuable if you are a victim of a flood and need to start rebuilding your life.

Alvin Michaels is a writer based in Pocatello Falls, Idaho who has written about the insurance industry for several major online news sites, newspapers and magazines