Everything you need to know about Flood Insurance

by jfinn

Category: BlogEducation



What is flood insurance?

Flood insurance covers direct physical loss by an excess of water on land that is usually dry.  A standard flood insurance policy is a single policy that pays for the direct physical damage to your insured property up to the replacement cost, or actual cash value (ACV) of the damages or the policy limit of liability.

Three important things to keep in mind when looking into your flood insurance policy: 

-Contents coverage must be purchased separately

-It is not a valued policy. Valued policy pays the limit of liability in the event of a total loss. Flood insurance pays the replacement cost or ACV of actual damages, up to the policy limit.

-It is not a guaranteed replacement cost policy. A guaranteed replacement cost policy pays the cost to rebuild your home regardless of the limit of liability. Flood insurance does not pay more than the policy limit.

Please feel free to contact us if you have any questions regarding your Flood Insurance policy.

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