What is a Flood?

The National Flood Insurance Program defines a flood as a “general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (one of which must be the policy holders property) from:

1. overflow of inland or tidal waters
2. unusual and rapid accumulation of runoff on surface water from any source
3. collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above
   

What does a Flood Insurance Policy cover?

A standard Flood Insurance Policy covers:

1. structural damage
2. furnaces, air conditioning units, water heaters, and/or other permanently installed equipment
3. clean up of debris caused by flood
4. floor surfaces such as carpet, wood floors and tile to the extent they are damaged

Although not required by federally or privately funded mortgages, contents coverage can be purchased in addition to building coverage. Contents coverage would include damage to furniture, electronics, clothing, books and items similar in nature

Who can purchase a Flood Insurance Policy?

A Flood Insurance Policy can be purchased by any individual or business that wishes to transfer the risk of property damaged by flood. There are three policy forms issued by providers:

1. Dwelling: this policy covers the majority of houses
2. General Property: this policy covers “business like properties”
3. Residential Condominium Building Association: this policy covers condominium and co-operative apartments
   

It is very important to understand that flood claims are specifically excluded from virtually all Homeowners, Renters, Condo, and Business Policies. In order to fill this potentially devastating gap in coverage, a Flood Insurance Policy must be tailored to your specific needs.