Real Estate Report:

The National Flood Insurance Program (NFIP) sends a summary of coverage document to homeowners who carry flood insurance. This document provides basic information on flood policies, their coverage and explanation on flood insurance as a whole.

There are two types of flood insurance coverage:

1. Building Property, up to $250,000, and
2. Personal Property (Contents), up to $100,000

Unlike most homeowner’s insurance policies, flood insurance is not a “valued” policy. This means that flood insurance pays just the replacement cost or the Actual Cash Value (ACV) of actual damages, up to the policy limit. It is also not a guaranteed replacement cost policy, meaning flood insurance does not pay more than the policy limit, even if the damages exceed this amount.

Generally, physical damage to your house or personal property “directly” caused by a flood is covered by your flood insurance policy. Under Building Property coverage this includes:

• The insured building and its foundation
• The electrical and plumbing systems
• Central air conditioning equipment, furnaces and water heaters
• Refrigerators, cooking stoves, and built-in appliances such as dishwashers
• Permanently installed carpeting over an unfinished floor
• Permanently installed paneling, wallboard, bookcases and cabinets
• Window blinds
• Detached garages (up to 10 percent of Building Property Coverage)
• Debris removal

Under Personal Property coverage, this includes:

• Personal belongings such as clothing, furniture and electronic equipment
• Curtains
• Portable and window air conditioners; portable microwave ovens and dishwashers
• Carpets not included in building coverage
• Clothes washers and dryers
• Food freezers (and the food in them)
• Certain valuable items such as original artwork and furs (up to $2500)

Items that are not insured by either Building Property or Personal Property coverage include:

• Damage caused by mildew or mold that could have been avoided by the property owner
• Currency, precious metals and valuable papers such as stock certificates
• Property/belongings outside of a building such as trees, wells, septic systems, decks, patios, hot tubs and swimming pools
• Living expenses such as temporary housing
• Financial losses caused by business interruption or loss of use of insured property
• Most self propelled vehicles such as cars, including their parts

Lauren Bunting is a licensed Associate Broker with Bunting Realty, Inc. in Berlin, MD.

Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.