When a home or business with a mortgage is located in a high risk flood area, the owner must have flood insurance. Insurance is not required for homes and businesses located in areas of moderate risk but it is recommended that coverage is obtained. Flood hazard maps are available for each community. These maps identify the risk for flooding in specific areas. Based on the risks involved, insurance premiums are established. Upon obtaining a flood insurance policy, it is important to note what is covered and understand what is not.

Areas of a homeowners building and property that are generally covered under flood insurance include the home and foundation and a percentage of a detached garage. Plumbing, electric, central air, furnaces and water heaters are covered. Also included are appliances, carpeting and installed wood products. When debris removal is required, it is paid under the insurance plan.

Personal property covered under flood insurance includes electronics, furniture and clothing. Food products stored in freezers can also be claimed. Valuable items may be submitted however, there is a limit to the insurance amount available for this type of claim.

There are several related costs that are not covered by a flood insurance policy. Outside items including decks, patios, hot tubs, swimming pools, plants and trees would not be reimbursed. The loss of currency, stock certificates or precious metals are not covered. Costs related to temporary housing would not be a part of the insurance policy.

Any area that receives rainfall is at risk for flooding. Incidents that can cause a flood include extreme weather events and broken or clogged drainage systems. The risk of flooding depends upon a number of factors. These include historical data, topography, river flow and development within an area. Areas that have never flooded in the past can experience flooding. Protecting yourself from the impact of a flood includes obtaining insurance.