Flood Insurance

Three Important Facts About Your Flood Policy

A Standard Flood Insurance Policy is a single-peril
(flood) policy that pays for direct physical damage to
your insured property up to the replacement cost or
Actual Cash Value (ACV) (See “How Flood Damages
Are Valued”) of the actual damages or the policy
limit of liability, whichever is less.

1. Contents coverage must be purchased separately.

2. It is not a valued policy.

A valued policy pays the limit of liability in the event of a total loss.
For example: Your home is totally destroyed by
a fire and it costs $150,000 to rebuild. If your
homeowners insurance policy is a valued policy
with a $200,000 limit of liability on the building,
you would receive $200,000. Flood insurance
pays just the replacement cost or ACV of actual
damages, up to the policy limit.

3. It is not a guaranteed replacement cost policy.

A guaranteed replacement cost policy pays the
cost to rebuild your home regardless of the limit
of liability. For example: Your home is totally
destroyed by a fire and it costs $200,000 to
rebuild. If your homeowners insurance policy
is a guaranteed replacement cost policy with a
$150,000 limit of liability on the building, you
would receive $200,000. Flood insurance does not
pay more than the policy limit.

For a flood quote, www.firstmetroagency.com