Building Coverage Elements
The National Flood Insurance Program, or NFIP, provides building coverage that protects the physical structure of your home and its foundation. This includes electrical and plumbing systems, central air conditioning equipment, furnaces, water heaters, and permanently installed appliances such as refrigerators and cooking stoves. The program also covers permanently installed carpeting over unfinished floors, permanently installed paneling, wallboard, and built-in bookcases and cabinets. Detached garages up to 10% of building coverage can be included, though this amount reduces your total building coverage. Structural elements like staircases, anchored fuel tanks, well water tanks and pumps, and solar energy equipment are also protected under standard NFIP policies.
Contents Coverage Options
Contents coverage under NFIP policies is sold separately from building coverage and protects your personal belongings. This includes clothing, furniture, and electronic equipment not permanently installed. Window air conditioners receive protection, as do portable appliances like microwave ovens and dishwashers. Valuables like artwork and furs are covered up to specific limits ($2,500 combined). Washer and dryer units are included, along with food freezers and the food within them. For most residential properties, the maximum contents coverage available is $100,000, and items are typically covered at actual cash value (depreciated) rather than replacement cost.
Coverage Limitations
The NFIP imposes significant coverage limitations that policyholders should understand. Properties in basements and crawlspaces have restricted coverage—only building components like foundation walls, electrical systems, and central air conditioning components are protected, while finished basement improvements and most personal property stored there are excluded. Currency, precious metals, and valuable papers are not covered. No coverage exists for temporary living expenses or loss of use if flooding makes your home uninhabitable. Property outside the building, including landscaping, decks, patios, fences, and swimming pools, receives no protection. Damages from earth movement are excluded even if caused by flooding.
Financial Limitations
NFIP policies come with strict financial caps. Residential building coverage maxes out at $250,000, regardless of your home's actual value. Contents coverage peaks at $100,000. These limits apply per building, meaning separate structures on your property may require additional policies. A 30-day waiting period typically applies before coverage takes effect, preventing last-minute purchases before anticipated flooding events.