Our flood insurance articles tend to get a few more visits this time of year.
After record snowfall this past winter, we’re expecting to field quite a few more inquiries about flood insurance coverage.
Many insurance agents will tell you they have a hard time convincing their insured to purchase flood insurance, as many homeowners incorrectly believe there is coverage against flood contained within a homeowners insurance policy (Do I need flood insurance?).
But as mentioned countless times already, flood insurance is only covered by the National Flood Insurance Program (NFIP). However, it can be purchased through insurance agents.
One particularly frequent coverage question pertaining to floods is whether or not seepage of water into basements is covered by a flood policy.
So what’s the official word on basement flood coverage and water seepage? Let’s take an in-depth look and while we’re at it, let’s include sewer backup here as well since both are common causes of flooded homes.
Seepage Is Covered
Seepage resulting from flood waters, even when the actual flood waters haven’t entered your home, is covered by your standard flood insurance policy. There are a few items to note when trying to determine if your particular insurance claim will be covered. These items may seem sort of obvious, but nonetheless, must be considered.
1. The “loss” suffered to your home must be within an area that meets the definition of a flood. Meaning a particularly heavy rain that may have only affected your home, but not been officially designated a flood, will not be covered.
2. The seepage or sewer backup must be a result of the flood. There may be instances where one or the other of these perils affects you, but were not caused directly from the flood. It may be rare…but it happens.
3. There is no coverage for your basement if it does not meet the definition of a basement based on the NFIP guidelines. So we’re clear here, the NFIP considers a basement to be a room or building area where the floor is BELOW GROUND LEVEL ON ALL SIDES.
What’s Covered in the Basement?
It’s important to remember that there are two types of flood insurance coverage. Put simply, they are “building property” and “personal property.”
The building property flood policy will cover your basement for the boiler, furnace, or water heater, and also items such as unfinished drywall for walls and ceilings, floor, nonflammable insulation, stairways and staircases attached to the building and clean-up.
Notice that large electronic or gas “items” like the boiler, furnace and water heater are building property and not personal property. Keep in mind these items are necessary to “keep the house running.” We make this distinction because a few items on the property list below, counter intuitively, aren’t considered building property.
When it comes to personal property coverage for the basement, coverage includes air conditioning units, portable or window type, clothes washers and dryers, food freezers, other than walk in, and the food in any freezer.
Notice relatively large electronic items that are not deemed “necessary” to run the home (at least to the NFIP anyway), like window air conditioners and freezers, are listed as personal property and building property.
In other words, you need to buy both types of flood coverage to make sure you are fully prepared for a flood.
What’s Not Covered in the Basement?
There are a few things you should move from the basement to higher ground during a flood. While these items ARE covered if they are not in the basement, you’d be out of luck if they are.
– Televisions and other personal electronics
– Other items not listed above are NOT covered in a basement.