What does Flood Insurance Cover?

When a hurricane notice, or worse, a hurricane warning, is issued, it’s too late to suddenly realize that you should have gotten flood insurance. Or perhaps you assumed it was already covered by your policy, just to discover, as the storm approached and you scrambled through your insurance records, that it wasn’t.

“Most consumers fail to review their insurance policy to know what’s included and what isn’t, and then they’re shocked they didn’t have the protection,” says Lynne McChristian, advisor to the Insurance Information Institute.

Hurricanes have one thing in common: they have a defined season, allowing you to plan for flooding coverage well before storms form. Here’s everything you need to understand about hurricane coverage so that you can be ready long before the storm hits.

If you live in a high-risk flood area near a body of water, it’s crucial to understand what your flood insurance may cover. Private flood insurance is vital for homeowners with a mortgage, as it may cover damages not included in standard policies.

Is Flooding Covered by My Home Insurance?

Homeowner’s insurance does not cover flood damage. You need a separate flood insurance policy to protect against severe cyclones, overflowing rivers, and heavy rain. Keep in mind that one inch of water could cause $25,000 in damage to your property. You’re taking a huge gamble if you procrastinate. So, it’s good to know that Neptune Flood can provide an affordable flood policy backed by the same cutting-edge technology used by NASA and the Federal government.

Whether you buy flood insurance through private flood insurance companies or federal flood insurance programs, understanding how flood insurance works is crucial. Policies typically cover structural damage and may cover your belongings on a replacement cost basis. Those living near a flood hazard or in a designated flood zone may be required to buy flood insurance. 

What Exactly Does Flood Insurance Cover?

Flood insurance separates your home’s structural and personal property into two different policies that can be acquired individually. Here’s how Neptune’s flooding coverage, which covers the two kinds of property, outperforms the NFIP’s (National Flood Insurance Program) policy: 

• Contents — The NFIP provides up to $100,000 in real cash value coverage for personal items (clothes, furnishings, mattresses, etc.). This implies that it only pays for the expense of replacing damaged or lost items depending on their depreciated worth. Neptune Flood provides complete coverage for your apartment’s belongings up to $500,000 for added peace of mind.
• Home – If you insure a single-family principal residence, the NFIP caps protection at $250,000, covering damage to the property (carpet, foundation, etc.) with new items, irrespective of depreciation. For the property where you’ve formed beautiful memories, Neptune Flood provides maximum coverage of $4,000,000.

Is There a Flood Insurance Waiting Period?

The NFIP, which FEMA (Federal Emergency Management Agency) oversees, is one solution for flood insurance. But this sort of insurance has limits. Residents of participating regions are the only ones who may use it. On the other hand, Neptune’s insurance is available to anyone who has an internet connection in 48 states and Washington D.C.

Additionally, if you acquire flood insurance via the NFIP, coverage will not begin until 30 days after the purchase date. If a hurricane hits during that 30-day window, your insurance will not cover flood-related loss to your house or belongings. Let’s assume flooding begins a day before your coverage kicks in – you’d be in a lot of trouble.

However, if you are insured with Neptune Flood, you’ll get complete coverage in 10 days rather than 30. That’s almost three weeks faster!

Is There Any Option for Obtaining Last-Minute Flood Insurance Coverage?

Your best choice for getting coverage is to go via a private insurance company. Private insurance agents will evaluate your home’s flood risk depending on its location, background, and susceptibility. If they determine that the danger is too great, they may refuse you. Remember that most insurers cease offering flooding plans when a storm warning is issued.

Is Flood Insurance Required If I Stay in a Low-Risk Area?

Even if you reside in a region with a reduced probability of direct hurricane impact, you might still be struck by a hurricane and its associated deluge. People outside of high-risk flood zones submit more than 25% of flooding claims.

Storm surge is another severe side effect of a storm that may wreak havoc on supposedly low-risk places. A storm surge is a flood of water, like a tsunami, brought onshore by a cyclone. It creates a significant flood danger not only along the coast but further inland. To demonstrate, Hurricane Katrina created a 28-foot flash flood in Mississippi, flooding 12 miles inland.

When a storm reaches landfall, it may unleash torrential rains. When Hurricane Katrina hit New Orleans, it not only caused cataclysmic floods but also overloaded the city’s drainage canals and levees. Almost 80% of the area was submerged.

I’ve Seen Flood Maps, But What Exactly Are They?

A flooding map is a chart of a potential flood zone or area that depicts the likelihood of flooding in your location. The map is separated into zones that depict the frequency and severity of flooding. These maps cannot anticipate where the water will flow during a cyclone or how severe the flooding will be. It is merely a suggestion and should not be relied on while preparing for insurance.

What About Flood Damage Assistance from FEMA?

If you are uninsured and experience hurricane-related water damage, FEMA aid may appear to be a white knight who will come in and rescue the day. However, it comes at a price and is not a fast remedy. Federal disaster aid is only available when a national disaster is declared.

Nevertheless, most floods do not warrant a declaration. Furthermore, if you are unsuccessful in obtaining a FEMA grant, you will be saddled with a low-interest catastrophe loan, and you will be required to quickly repay the loan obligation you currently have on your home.

Do you know that FEMA disaster aid won’t restore your house to a pre-hurricane state or replace most of your prized possessions? Also, remember that FEMA was heavily criticized following Hurricane Katrina for supposedly delivering relief late or not at all.

Conclusion

Your standard homeowners insurance policy protects your house against a variety of losses and threats. However, if calamity hits in the shape of excessive rains, a tropical storm, or a hurricane that causes flooding, you must have flood coverage in place.

Get a Flood Insurance Quote 

Neptune Flood understands how a hurricane could shatter the life you’ve worked so hard to build. That’s why we encourage you to buy insurance from us far in advance of the hurricane season. Time is of the essence, so contact us today to learn more about flood insurance so you can be ready for the worst and backed by the best. Get a flood insurance quote online in two minutes!

Frequently Asked Questions

What Coverage Limits Are Available with Neptune?

Neptune offers building coverage up to $4,000,000 on residential, up to $10,000,000 on commercial, and $15,000,000 on RCBAP. In addition, Neptune offers a suite of additional coverages to allow you to comprehensively protect your property.

What Broader Coverage Options Are Available with Neptune?

Neptune provides a variety of options so each homeowner can customize coverage to protect their assets.

• Residential: Basement Contents, Temporary Living Expenses, Unattached Structures, Pool Repair & Refill, Loss of Rental Income, Replacement Cost on Contents
• Commercial: Business Interruption, Pool Repair & Refill, Basement Contents, Replacement Cost on Building, and Loss of Rental Income
• RCBAP: Pool Repair & Refill, Basement Contents

What Is the Average Flood Insurance Premium?

The average cost of a residential flood insurance policy is $1,032 per year. But, because rates are based on many variables, your premium may be far less if your property is at low risk of flood damage.