Flood Insurance: Protection Your Standard Home Policy Doesn’t Provide

Most people are surprised to learn that regular homeowners, renters, and commercial property policies almost never cover flood damage. With storms getting stronger and more frequent across the country, one major flooding event can wipe out years of hard work if you’re not properly protected.

That’s why the federal government created the National Flood Insurance Program (NFIP) in 1968. The NFIP makes affordable flood insurance available to homeowners, renters, and business owners in participating communities—places that agree to adopt and enforce FEMA-approved floodplain management rules to reduce future flood risks.

Two Main Types of Flood Coverage

You can buy one or both of these coverages (even as a renter):

1. Building Coverage Protects the physical structure and systems built into your home or building, including:

   • Foundation, walls, and roof

   • Electrical and plumbing systems

   • Furnaces, central air conditioning, and water heaters

   • Built-in appliances (refrigerator, stove, dishwasher)

   • Permanently installed carpeting, cabinetry, paneling, and bookcases

   • Attached garages and certain debris removal costs

2. Contents (Personal Property) Coverage Covers your belongings inside the building, such as:

   • Furniture, clothing, and electronics

   • Curtains and window treatments

   • Portable microwaves and air conditioners

   • Washers, dryers, and area rugs

   • Valuable items up to specific limits (higher limits available with private flood insurance)

How Claims Are Paid

• Replacement Cost Value (RCV) – Available only for owner-occupied, single-family primary homes (and only on the building, not contents). Pays to rebuild or repair with similar materials, up to the policy limit (often up to 80% of full replacement cost).

• Actual Cash Value (ACV) – Used for contents and sometimes secondary homes. Pays replacement cost minus depreciation due to age and wear.

Don’t wait for the next storm warning. Contact Arrington Risk Management today for a no-obligation flood insurance quote. We’ll help you get the right coverage, right away.