A standalone coverage excluded on all homeowners policies.
It doesn’t matter if you live 100 feet from one of Michigan’s beautiful shorelines, or 100 miles – flood insurance adds an important layer of protection for your home and personal belongings. Believe it or not, there is zero coverage for flooding within your homeowners or condo insurance policy. It’s important to realize that while you may have water sewer backup coverage which pays repairs for things like broken pipes or overflowing bathtubs – flooding is explicitly excluded.
What events are covered?
When you purchase a flood insurance policy, you’ll have the option to purchase either building coverage and/or contents coverage – at Conner Insurance Group, we always recommending purchasing both for the most comprehensive level of coverage.
Assuming you purchase both types of flood insurance coverage, you’ll have coverage for physical damage to structures and contents as a result of flooding from heavy snowmelt and runoff from heavy rainfall. You will also have coverage for any damage as a result of erosion due to currents or uncommon water cycles.
Your flood insurance policy may also provide coverage damage resulting from mudflows or mudslides, but the wording for these events is very specific and worth reviewing with an agent.
What does flood insurance protect?
Building Property Coverage
The building property portion of a flood insurance policy provides coverage up to $250,000 for your dwelling. The cost of this portion of your flood policy will be determined by a number of factors including where your home is located and the style of your home. If you have a standard below grade basement, crawlspace, or walk-out – the verbiage within the flood policy can get a bit complicated as far as what specifically will be covered in these spaces.
When purchasing your flood insurance policy, you’ll have the option to choose either replacement cost value or actual cash value coverage for your building property coverage.
Personal Property Coverage
The personal property coverage in a flood insurance policy provides coverage up to $100,000 on an actual cash value coverage basis. This will provide coverage for most personal belongings in your home, but there are some exceptions. It’s best to consult with a licensed agent to understand exactly what will be covered within your home under your flood insurance policy.