Flood Limitations In Coverage

Below are standard exclusions in the flood policies for review.

1. No coverage for loss of business income
2. No coverage for loss of rental income
3. No coverage for loss of use of the building
4. No coverage for additional living expenses
5. No extra expense coverage
6. No law and ordinance coverage
7. No replacement of any similar installation or flooring that was NOT physically damaged.
   • For example, if upper cabinets were not damaged by flood, but you must repair the lower cabinets, you are not entitled to claim money for the value of the upper cabinets even though you would need to replace them to match the bottom set.
8. No landscaping of any kind, including land, trees, shrubs, crops, or lawns
9. No self-propelled vehicles or machines, including their parts
   • This includes all recreational vehicles including go carts, golf carts, etc.
10. No aircraft or watercraft
11. No animals of any kind, including pets
12. No swimming pools (including hot tubs above or below ground)
13. No fences, retaining walls, seawalls, bulkheads, patios, piers, bridges or docks
14. No power generators
15. No outdoor furniture of any kind
16. No currency, coins, bills, deeds, evidences of debt, stored value cards, securities, manuscripts or other papers.
17. No underground structures and equipment such as septic tanks or wells.
18. No containers, including related equipment such as tanks containing gas or liquids.
19. No open structures (such as boat houses)
20. No other structure on the property besides a detached garage for a dwelling
    • This is also limited to only 10% of the coverage A limit and is deducted from the total limit of the policy.
21. No personal property in basements or enclosures built after the flood maps became active in your area
22. No coverage to test or monitor potential pollutants
23. No power, heating, or cooling failures NOT due to the direct physical loss by or from flood

Limitations to standard flood-insurance policies

1. Most policies are settled at Actual Cash Value (which factors in depreciation) instead of Replacement Cost Coverage, with no option to upgrade.
2. Personal property is always settled at Actual Cash Value (which factors in depreciation)
3. Valuables are limited to $2,500
   • These are NOT valued at replacement cost
   • This includes (but not limited to): jewelry, collectibles, firearms, family photos, designer clothing, electronics, silverware/fine dining wares, artwork, antiques (functional value only), rare books, autographed items, precious stones, and furs
4. There is limited coverage to basements and enclosures built after the flood maps became active in your area.
   • This is limited to : Central air conditioners, cisterns, drywall for walls and ceilings, but only the cost of labor to nail it, unfinished and unfloated to the framing, electrical junctions, elevators, but ONLY installed prior to 1987, fuel tanks and the fuel in them, furnaces, heat pumps, stairways attached to the building, sump pumps, well water tanks, footings, foundations, or other anchoring systems

The length of this list is long and illustrates the dangers of simply going after the cheapest policy with flood. Whether home/business owners can understand their true flood risk or not, they should be aware of everything that would not be covered on traditional policies so they can make an informed decision about adding coverages or considering more robust products that are offered on the private market.

Most risks that are not beach front or in high probability flood zones can usually purchase Excess or Private Flood policies which can provide business income or loss of rents, and increase coverage over the basic $250,000 limit.   To upgrade your current flood policy or to discuss Private or Excess Flood options contact us.