WHAT DOES MY FLOOD POLICY COVER?

More than likely, if you have a flood insurance policy, it is a Standard Flood Insurance Policy (SFIP). This means for a residence that you have $250,000 in building coverage and $100,000 in contents coverage. And it means for a business (or residential building with 5 or more units) that you have $500,000 in building coverage and up to $500,00 for contents coverage. There is another form, called a Residential Condominium Building Association Policy, that will not be the subject of this post.

The SFIP is a single-risk policy, which means it only covers “direct physical loss by or from flood.” And all SFIP’s are the same because they are all codified by Federal law.

And since the SFIP only covers for “direct physical loss,” it does not cover for any of the following:

• Loss of revenue or profits
• Loss from interruption of business
• Additional living expenses incurred while the property is being repaired

Importantly, damage from water, mildew or mold is excluded IF it results from any condition within the control of the insured including the failure to inspect and maintain the property after a flood recedes. Otherwise, losses from mold and mildew are covered. This is why we recommend you begin the clean-up process as quick as you can. We also recommend saving material that is removed, including drywall, carpeting, and baseboards, until your flood insurance adjuster has inspected the home and property.

Under the building coverage, the policy provides coverage for:

• Awnings and canopies
• Built-in dishwashers
• Central air conditioners
• Fire sprinkler systems
• Hot water heaters
• Outdoor antennas
• Bookcases
• Paneling
• Plumbing fixtures
• Cooking stoves and ovens
• Carpet permanently installed over unfinished flooring
• Blinds
• Built-in microwave ovens
• Elevator equipment
• Walk-in freezers
• Light fixtures
• Permanent cupboards
• Cabinets
• Wallpaper
• Ranges
• Refrigerators
• Wall mirrors permanently installed

Common items NOT COVERED by the SFIP, include:

• Open structures, including boathouse
• Trees
• Plants
• Walkways
• Driveways
• Patios (or other surfaces located outside the perimeter exterior walls of the building)
• Lawns
• Shrubs
• Underground structures
• Decks
• Fences
• Swimming pools and equipment

Many of the items are likely covered by your homeowner’s insurance policy.

Under the Contents portion of the SFIP policy, the coverage applies to personal property located inside the building at the insured location. And it applies to property owned by the insured and household family members.

Importantly, the SFIP will pay no more than $2,500 for any loss to one or more of the following: artwork, photographs, collectibles, rare books, jewelry, watches, precious stones, articles of gold, silver, or platinum, and furs.

Potts law can help with your flood policy claim. Our team of property damage lawyers are here to help with questions regarding flood insurance.