Residing in an area that's near or in a flood zone comes with certain risks, particularly flood damage. Luckily, you can be protected from damage caused to the property during floods when you acquire a flood insurance plan. The policy covers properties against damages that occur due to snowstorms, rain, and snow — as well as melting ice. Flooding that affects a home because of an overflowing storm drain or embankments is also included in the coverage. These risks aren't included in the homeowner's policy.

Before you contact a flood insurance company, it's crucial to understand a few things about the policy. Read on to know more.

What Form of Flood Plan Can You Get?

These policies can be categorized into two — a plan for covering the building, and another for the contents inside the building.

The structure coverage pays for structural damages and includes areas like the floors, walls, plumbing, and electrical system. Other items like the AC systems, sump pumps, water heaters, cabinets, cooking stoves, and refrigerators fall under the same coverage. A contents policy will pay for flood damage on the items in your residence. This includes clothes, furniture, washers, televisions, toys, and other similar things.

If you want to confirm everything that's covered before buying, you should ask the insurance agent to share more details. This way, you will know what the company will pay for in case floods set in.

Is There a Standard Rate?

To get the much-needed protection against flood risks, you must commit to paying the insurance provider a certain amount of money annually. This amount varies depending on certain factors like the size of the house and its contents, age of the house, and building elevation. The deductible you choose, insured amount, home levels, and building materials used to construct the house also determine the rate.

Insurance providers also consider the residence location before setting the premium. If the area is considered a high-risk area, premiums will be higher, and vice versa. But, you should remember that the risk rating for an area can change, and this can reduce or increase the cost of the policy.

What Doesn't the Policy Cover?

All insurance coverages have exceptions, so it's vital to know them in advance. Your flood coverage excludes damages caused by earth movement (even mudslides) and damages to outdoor structures (like pools, patios, and decks). The provider may not pay for living costs you incur after the family is displaced. Also, if your structure's damage is caused by preventable risks like moisture, mold, or mildew, you might not get compensation. Ask the agency such as Ronald H. Krupa Insurance Agency to outline all the exclusions specific to their company to make an informed choice.