Flood Protection
Protection From The Elements
Coverage For Flood Damage
In 1968, Congress created the National Flood Insurance Program (NFIP) to help provide a means for property owners to financially protect themselves. The NFIP offers flood insurance to homeowners, renters, and business owners if their community participates in the NFIP. Participating communities agree to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flooding. Find out more about the NFIP and how it can help you protect yourself.
Flood insurance protects two types of insurable property: building and contents. The first covers your building, the latter covers your possessions; neither covers the land they occupy.
Reimbursment Methods For Flood Damage
What You Need To Know
The two most common reimbursement methods for flood claims are : Replacement Cost Value (RCV) and Actual Cash Value (ACV). The RCV is the cost to replace damaged property. It is reimbursable to owners of single-family, primary residences insured to within 80% of the building’s replacement cost.
All other buildings and personal property (i.e. contents) are valued at ACV. The ACV is the RCV at the time of loss minus physical depreciation. Personal property is always valued using the ACV.
Building coverage includes:
The insured building and its foundation
The electrical and plumbing system
Central air conditioning equipment, furnaces, and water heaters
Refrigerators, cooking stoves, and built-in appliances such as dishwashers
Permanently installed carpeting over unfinished flooring
Contents coverage includes:
Clothing, furniture, and electronic equipment
Curtains
Portable and window air conditioners
Portable microwaves and dishwashers
Carpeting that is not already included in property coverage
Clothing washers and dryers
What People Are Saying
FAQ
Does homeowners insurance cover flood damage?
No. Standard homeowners insurance policies do not cover flood damage. A separate federal or private flood insurance policy must be purchased to protect your home and belongings from flood-related losses.
What is the National Flood Insurance Program (NFIP)?
The National Flood Insurance Program was created by Congress in 1968 to help property owners financially protect themselves against flood damage. It offers flood insurance to homeowners, renters, and business owners in communities that participate in the NFIP by adopting FEMA-approved floodplain management ordinances.
What does flood insurance cover?
Flood insurance covers two types of property: the building and its contents. Building coverage includes the structure and foundation, electrical and plumbing systems, HVAC equipment, built-in appliances, and permanently installed carpeting. Contents coverage includes clothing, furniture, electronics, curtains, portable appliances, and washers and dryers.
What is the difference between replacement cost value and actual cash value for flood claims?
Replacement cost value (RCV) pays the full cost to replace damaged property and is available to owners of single-family primary residences insured to within 80% of the building’s replacement cost. Actual cash value (ACV) is the replacement cost minus physical depreciation and applies to all other buildings and personal property. Personal property is always valued at ACV under the NFIP.
Do renters need flood insurance?
Yes. The NFIP offers flood insurance to renters as well as homeowners. Renters can purchase contents-only flood coverage to protect their personal belongings from flood damage, even if the building itself is covered under the landlord’s policy.
Does flood insurance cover the land my home sits on?
No. Flood insurance covers the building and its contents but does not cover the land they occupy.
Should Nebraska homeowners consider flood insurance even if they're not in a high-risk zone?
Yes. Flooding can happen in areas outside of designated flood zones, and damage from even a small amount of water can be costly. Since standard homeowners policies exclude flood damage entirely, having a separate flood policy provides an important layer of financial protection regardless of your flood zone designation.
Informational statements regarding insurance coverage are for general description purposes only. Read our disclaimer.
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