Flood Insurance Inclusions and Exclusions: What Texas Homeowners Need to Know

Flooding is a serious concern for many Texas homeowners, especially in coastal areas and those prone to heavy rain and hurricanes. Those in areas not generally prone to these natural disasters may also need to account for their potential, as being unprepared could make even a single, isolated incident particularly devastating. With these things in mind, understanding flood insurance, including policies’ inclusions and exclusions, should be a top priority.

What Does Flood Insurance Typically Cover?

Flood insurance is designed to cover your home and belongings against damage caused by flooding, which is not included in most standard homeowners policies. Specifically, policies may include financial protection for the following:

• Structural elements—This typically includes your home’s foundation, walls, electrical and plumbing systems, HVAC equipment and built-in appliances.
• Personal property—Policies may also cover personal belongings such as furniture, clothing, and electronics, if they’re damaged or swept away by floodwaters.
• Cleanup costs—In some cases, your insurance may also assist with expenses if you need to remove debris or contaminated materials from your home.

Common Flood Insurance Exclusions

It’s just as important to know what flood insurance does not cover. Some common exclusions in flood insurance policies may include:

• Basement improvements—Finished walls, floors and personal belongings in basements are often excluded.
• Temporary housing—Costs for alternative living arrangements if your home is uninhabitable are often excluded.
• Vehicles—Cars and other vehicles are not covered under flood insurance; you’ll need separate comprehensive auto coverage for such losses.
• Mold, mildew and moisture—Unless directly caused by a covered flood event, despite you taking reasonable preventative measures, costs arising from these issues are usually excluded.
• Currency and valuable papers—Cash, stock certificates and other valuable documents are not typically covered.

Learn More

Homeowners in McAllen, TX and throughout much of the Lone Star State may face unique flood risks and coverage options. Reviewing your policy details can help make sure you’re not caught off guard during the claims process.

If you have questions about flood insurance coverage or want to review your current policy, contact Verax Insurance Services today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.