Personal Umbrella Policy

While floods can cause major destruction to your home and property, flood damage is not covered by your Homeowners insurance policy. Foundation Insurance Group writes flood coverage through Selective Flood/National Flood Insurance Program (NFIP) to provide this specialized coverage needed to protect your home or business from rising waters and flood damage. In order to secure financing, to buy, build, or improve structures located in the Special Flood Hazard Areas (SFHA), your are required to purchase flood insurance. Properties located in low to moderate risk zones may be eligible for a Preferred Risk Policy, a low cost option that allows property owners and businesses to protect themselves against the harsh effects of flooding.

Your local community must participate in the NFIP program for you to purchase flood insurance. Participating communities must implement measures to reduce the risk of future flooding. When a community enters the NFIP program, FEMA conducts a yearlong study to evaluate flood plains. The results are used in rating flood insurance policies. Currently, over 20,000 communities participate. In exchange, the NFIP makes federally backed flood insurance available to homeowners, renters, and business owners in these communities.

Unlike your Homeowners policy, flood insurance does not cover both the structure and contents of your dwelling. You must purchase both contents coverage and building coverage to be fully insured.

Should I buy Flood Insurance?

According to FEMA, all areas are susceptible to flooding to varying degrees. Flooding can be caused by heavy rains, melting snow, inadequate storm water drainage, failed protective devices such as dams and levees, and tropical storms and hurricanes.

What is Covered

  • Damage to your dwelling structure (including single family homes, condos, mobile homes if anchored to a permanent foundation)
  • Contents and personal belongings (you will need to purchase contents coverage separately)
  • Expenses to protect your home against flooding including sandbagging and other measures
  • Clean-up costs for covered items

What is Not Covered

  • Structures not attached to your home. This includes, sidewalks, driveways, lawns and gardens and other landscaping
  • Automobiles
  • Hot tubs and swimming pools
  • Decks, patios fences
  • Wells and septic systems
  • Business personal property
  • Floating structures, including docks and piers


Logically, basements are the first areas of your dwelling that will flood. Unfortunately, coverage is limited. Some structural items may be covered such as central air conditioners, foundation walls, electrical outlets, furnaces, and hot water heaters. Some appliances found in many basements may also be covered, like washers and dryers and freezers. Refrigerators are usually not covered. Most personal belongings: rugs, carpet, floor tile, furniture, clothing, and electronic equipment are typically not covered if they're located in the basement.

Finally, there's a 30 day waiting period from the date of purchase until the time your policy goes into effect (unless the mortgage company requires flood coverage at closing then the 30 day wait is waived). Contact your Foundation Insurance Group agent today for more information about Flood Insurance and how we can help you get the coverage you need.