Flood Insurance

from Hometown Insurance Agency of Utah

Flood Insurance

Did you know that your regular homeowner insurance policy probably does not cover flooding? This is alarming for homeowners as the US has seen many extreme weather conditions over the past decade, including flooding and heavy rains.

Fortunately, in 1968, the federal government created a program called the NFIP, the National Flood Insurance Program. Communities that participate in this program can get special flood insurance for residents as homeowners, renters, and business owners. Another purpose of the NFIP is to create building and infrastructure standards to minimize the threat of flooding in high-risk areas.

While flood insurance doesn’t protect land, it can protect buildings and their contents. It is typically divided into two categories when it comes to policies and claims:

Building protection covers:

  • Buildings and foundations
  • Plumbing and electrical systems
  • HVAC, such as central air conditioning units, water heaters, and furnaces
  • Larger appliances, like refrigerators, dishwashers, and stoves
  • Permanently installed carpeting

Building contents insurance covers:

  • Portable appliances (microwaves, for example)
  • Window treatments, like curtains, drapes, and blinds
  • Portable air conditioners
  • Carpeting not covered by other policies
  • Clothes washers and dryers
  • Electronics, furniture, and clothing
  • Miscellaneous household and personal belongings

When filing a flood insurance claim, policyholders are reimbursed in one of two ways. Actual cash value (ACV) is used to cover the expense of personal property. It is calculated by applying depreciation to the replacement cost value (RCV) of an item to account for use or wear and tear.

Replacement cost value (RCV) takes into account what it costs to replace your damaged property. Talk to your insurance agent to discuss limits to the replacement cost of your property. 

With so much of the country experiencing hurricanes and other weather events that cause storm surges and overflowing rivers, can you afford to be without flood insurance?

To find out more about the NFIP and to get more information about flood insurance, call Hometown Insurance Agency of Utah at 435-754-7701 today. Our independent insurance agents can tell you if you are at risk of flooding in Logan and discuss all your homeowner, renter, and business insurance needs with you.