Understanding Your Flood InsurancePolicy 

National Flood Insurance ProgramTALKING POINTS 

A FLOOD INSURANCE POLICY IS THE BEST OPTION TO FINANCIALLY PROTECT YOUR HOME FROM 
FLOOD DAMAGE. 

. Flash floods, inland flooding and seasonal storms bring flooding to every region of the country. A flood insurance 
policy from the National Flood Insurance Program (NFIP) covers damage from these events. The NFIP also covers 
flood damage caused by storm surge. 


. Flood insurance covers damage of up to $250,000 for your building and up to $100,000 if you purchase contents 
coverage. Contents coverage is not automatically included in a flood policy. For businesses, flood insurance covers 
damage of up to $500,000 for your building and up to $500,000 if you purchase contents coverage. 


. Policies are available in three forms: Dwelling (most homes), General Property (apartments and businesses) and 
Residential Condominium Building Association (condominiums). Renters are also eligible to purchase a flood 
insurance policy. 




PREMIUMS ARE SET BY THE NATIONAL FLOOD INSURANCE PROGRAM AND DO NOT DIFFER 
AMONG INSURANCE COMPANIES. 

. The average premium for a yearly flood insurance policy is around $500. You can financially secure your home or 
business at a cost equivalent to a year’s cable television subscription. 


. If you live outside of the high-risk areas (or SFHA) and are eligible for the lower cost Preferred Risk Policy, your 
flood insurance premium may be as low as $112 a year, including coverage for your property’s contents. 


. One catastrophic event doesn’t dramatically change the overall cost of flood insurance. 




THE FOLLOWING ARE COVERED UNDER “BUILDING COVERAGE:” 

. Structural damage 


. Foundation elements 


. Cleanup after a flood 


. Sump pumps 


. Well water tanks and pumps, cisterns and the water in them 


. Oil tanks and the oil in them, natural gas tanks and the gas in them 


. Pumps and/or tanks used in conjunction with solar energy 


. Furnaces, hot water heaters, air conditioners and heat pumps 


. Electrical junction and circuit breaker boxes and required utility connections 


. Stairways, staircases, elevators and dumbwaiters 


. Unpainted drywalls and ceilings, including fiberglass insulation 




FEMAMARCH 2007 PAGE 1 


BUILDING AND PERSONAL PROPERTY COVERAGE DOES NOT COVER THE FOLLOWING: 

. 
Damage caused by moisture, mildew or mold that could have been avoided by the property owner 
. 
Currency, precious metals and valuable papers such as stock certificates 
. 
Property and belongings outside of a building such as trees, plants, wells, septic systems, walks, decks, patios, fences, 
seawalls, hot tubs and swimming pools 
. 
Living expenses such as temporary housing 
. 
Basement improvements like finished walls, floors or ceilings, or personal belongings that may be kept in a basement, 
such as furniture and other contents 
. 
There are also some exceptions for coverage in areas below the lowest elevated floor of your home 
. 
Enclosed areas under the first floor used for storage; the contents will not be covered by flood insurance 


FOR MORE INFORMATION: 

. 
A Summary of Coverage document helps you understand your flood insurance policy. It provides general information 
about deductibles, what is and isn’t covered by flood insurance, and how items are valued at the time of loss. You can 
find this document at: www.fema.gov/pdf/nfip/summary_cov.pdf. 
.. The Flood Insurance Claims Handbook is available to help you through the process of filing a claim and appealing the 
decision on your claim, if necessary. You can find this document at 

www.fema.gov/library/viewRecord.do?id=2187. 


. 
Contact your insurance agent to help you decide what kind of flood protection is best for you. 
. 
Visit FloodSmart.gov or call 1-800-427-2419 to learn how to prepare for floods, how to purchase a flood insurance 
policy and what the benefits are of protecting your home or property investment against flooding. 


MARCH 2007 PAGE 2