What Does Flood Insurance Cover and How Does It Work?

Whether you live on the coast, by a river, or just someplace where an umbrella should never be out of reach, flood insurance can help protect your home and possessions from this common source of property damage. Read more to learn what flood insurance is, what it covers, and how it works.

What is Flood Insurance?

Flood insurance is a type of coverage that protects your home and belongings from damage caused by flooding. This protection is typically not included in standard homeowners or renters insurance.

Common causes of flooding include:

• Heavy rainfall
• River or stream overflow
• Storm surges
• Dam or levee failure
• Snowmelt or ice jams

Although standard policies do not include it, you can purchase flood insurance through the National Flood Insurance Program (NFIP), and GEICO Insurance Agency can help you obtain it.

What Does a Flood Insurance Policy Cover?

Flood insurance covers the structure of your home and your personal property in the event of a flood.

Building Coverage

Flood insurance helps protect the physical structure of your home from damage caused by flooding, giving you peace of mind when natural disasters strike. It covers the main dwelling and its essential components, ensuring that repairs or replacements are manageable after a flood.

Coverage typically found in a standard policy includes, but isn’t limited to:

• Appliances (refrigerators, washers, dryers, and dishwashers)
• Carpeting and flooring
• Cabinets and built-in shelving
• Electrical and plumbing systems
• Heating, ventilation, and air conditioning (HVAC) systems
• Walls, doors, and windows

Personal Property Coverage

Flood insurance doesn’t just protect the structure of your home—it often extends to cover your personal belongings as well. This makes it essential to carefully document your possessions, especially valuable items, to ensure you can provide an accurate claim if a flood occurs.

Covered belongings often include:

• Clothing and shoes
• Furniture
• Electronics (TVs, computers, and gaming consoles)
• Appliances (microwaves, coffee makers, and small kitchen gadgets)
• Personal valuables (jewelry, artwork, and collectibles)
• Books, linens, and other household items

A word to the wise, though—there are other ways that a home can sustain water damage (such as a pipe bursting in the wall) that are not usually covered by a flood policy, so you should be sure of what your home or renters insurance policy covers.

What Isn’t Covered by Flood Insurance?

Although flood insurance covers many types of damage caused by flooding, it doesn’t protect against every possible scenario. Understanding what isn’t covered is just as important as knowing what is, so you can take additional steps to safeguard your home, belongings, and finances.

Events that usually fall outside the scope of flood insurance include:

• Damage from mold or mildew: Flood insurance typically does not cover mold or mildew that develops after water has receded.
• Paper valuables: Important documents, books, and photos are generally not protected under standard flood policies.
• Outdoor property: Items like landscaping, fences, decks, and patios are usually excluded from coverage.
• Financial losses from business interruption: Lost income or business-related expenses are not covered by personal flood insurance.
• Vehicles: Cars, motorcycles, and boats are not included under standard flood insurance policies.

What Types of Floods and Natural Disasters Does Flood Insurance Cover?

Flood insurance is available through the National Flood Insurance Program (NFIP), which GEICO Insurance Agency helps customers obtain. NFIP coverage protects against water damage caused by natural disasters such as heavy storms or rising rivers.

Flooding can happen in many ways, depending on where you live, including:

• Heavy rainstorms: Intense or prolonged rainfall can overwhelm natural and man-made drainage systems, leading to flooding.
• River or stream overflow: Rising water levels from nearby rivers or streams can spill into surrounding areas, flooding homes.
• Hurricane or tropical storm surges: Coastal storms can push large volumes of seawater inland, inundating properties.
• Snowmelt flooding: Rapid melting of snow can cause rivers and streams to swell, leading to overflow in low-lying areas.
• Dam or levee failures: Natural events like excessive rainfall can compromise dams or levees, releasing water and flooding nearby communities.

Who Can Buy Flood Insurance?

Homes and businesses located in communities that participate in the National Flood Insurance Program (NFIP) are eligible for flood insurance at a modest cost through the federal government. Under this program, insurance companies issue flood insurance and the federal government administers the program.

Flood insurance normally requires a 30-day waiting period from the time you sign up before the coverage is effective. Exceptions are only made for certain circumstances, such as if you're purchasing a home and the closing is in less than 30 days.

Why Do I Need Flood Insurance?

If you own property in a special flood hazard area (SFHA) and have a mortgage, federal law normally requires you to have flood insurance. If you live in an SFHA there is at least a one percent chance of flooding in any given year.

Even if you are not required to purchase flood insurance, your home may still be at risk from floods.

Many people think that flood insurance is just for properties on the water, like beach houses. But unfortunately, because of factors like the shape of surrounding land, the type of soil, and weather patterns, you don't need to have pelicans nesting in your backyard to be at risk for flooding.

Get Your Flood Insurance Through GEICO Insurance Agency?

Flood insurance policies are available through the National Flood Insurance Program (NFIP), and GEICO Insurance Agency can help you get the coverage you need. Because NFIP policies can sometimes feel complicated, a licensed agent through the GEICO Insurance Agency can help walk you through the process and answer your questions, making sure you understand your options.

Through GEICO Insurance Agency, you get the best of both worlds: our top-rated customer service and the security of federally backed NFIP coverage.

If you’re ready to explore flood insurance or simply want more details, call us at 800-566-1575.