Insurance house concept.

Flooding from storms and heavy rains can be common in the Mid Atlantic area during the winter months.  Nor’easters along the Atlantic can cause heavy rain, winds and coastal flooding this time of  the year.  That’s why it is important to take necessary precautions against flooding this winter and to understand your flood insurance policy.

According to the National Flood Insurance Program (NFIP) a flood is defined as “an excess of water on land that is normally dry.  A Standard Flood Insurance Policy is a single-peril policy that pays for direct physical damage to your insured property up to the replacement cost or Actual Cash Value of the actual damages or the policy limit of liability, whichever is less.” The following information is provided by FEMA’s National Flood Insurance Program Summary of Coverage.

Important Facts to Note About Your Flood Policy

  • Contents Coverage must be purchased separately.
  • It is not a valued policy.
  • It is not a guaranteed replacement cost policy.

How items are valued at time of loss.

Replacement Cost Value: the cost with depreciation, to replace that part of a building that is damaged.  Building must be a single family dwelling and the building must be principal residence at time of loss (80 percent of the year), and your building coverage is at least 80 percent of the full replacement cost of the building, or the maximum available for the property under the NFIP.

Actual Cost Value: the replacement cost at the time of loss, less the value of physical depreciation– this includes personal property.

There are special considerations for what is covered in areas below the lowest elevated floor of your dwelling.  Be aware of what is covered under building property coverage and what is insured under personal property coverage. And what is not covered under either.

Special considerations are allowed for multiple claims and increased cost of compliance coverage when flood damages are severe.  Contact your agent to discuss your policy and questions related to your coverage.

Be prepared.  If you haven’t already, purchase flood insurance for your home. Your Standard Flood Insurance Policy, your application, and any endorsements are a part of  your official contract of insurance and should be reviewed with your insurance agent or company representative.

RHH Insurance of Ellicott City, MD provides flood insurance to cover direct physical loss caused by the NFIP defined flood.  Click here to get a free flood quote now.


Posted in: Flood Insurance Maryland, Homeowners Insurance