Exclusions in Flood Insurance Policies
Property and Areas Not Covered
Standard flood insurance policies through the NFIP or the National Flood Insurance Program exclude certain property types and areas. These normally include lawns, trees, shrubs, plants, walkways, decks, patios, fences, seawalls, hot tubs, and swimming pools. Most outdoor property features are not covered except for limited exceptions.
Basements, crawlspaces, and areas below the lowest elevated floor are subject to significant coverage limitations. While structural elements may be covered, finished basement improvements (like paneling or carpeting) and most personal belongings stored in these areas are typically excluded.
Types of Water Damage Excluded
Not all water damage qualifies as "flood" under NFIP policies. Damage caused by moisture, mildew, or mold that could've been prevented by the property owner is excluded. Sewer backups are not covered unless directly caused by flooding. Water damage from internal sources (like burst pipes or leaking appliances) is not covered by flood insurance but may be covered by homeowners insurance.
Financial and Currency Exclusions
Currency, precious metals, stock certificates, and valuable papers like deeds are excluded from coverage. Also, most policy forms exclude coverage for financial losses because of business interruption or loss of use of the insured property.
Temporary Living Expenses
Unlike homeowners insurance, NFIP flood policies don't cover additional living expenses or loss of use. This means temporary housing, food, and other expenses incurred while your home is being repaired after a flood are not covered.
Vehicle Damage
Damage to vehicles is excluded from standard flood insurance policies. Flood damage to cars, motorcycles, and other vehicles would be covered under comprehensive auto insurance, not flood insurance.
Earth Movement Exclusions
Even if caused by flooding, damage from earth movement is generally excluded. This includes landslides, sinkholes, destabilization of land, and subsidence, regardless of whether flooding contributed to the earth's movement.
Additional Policy Considerations
Private flood insurance policies may offer different coverage than NFIP policies, sometimes with fewer exclusions. However, all flood policies have waiting periods (typically 30 days for NFIP policies) before coverage takes effect, which means you cannot purchase coverage immediately before an anticipated flood event.
Understanding these exclusions is crucial for property owners to ensure adequate protection through either supplemental coverage or appropriate risk management strategies.