Insurance can be a very wonderful thing if you experience a loss. Most people do not have the disposable income to handle a loss all on their own, which is why they have insurance. Insurance will pay for damages for you, so you can recoup whatever it is you lost. However, insurance is not a magic wand. It only covers the things specified in your policy. What you may not realize is that when it comes to your renter’s or homeowner’s insurance in Florida, you likely do not have flood insurance coverage.

Flood insurance, according to the Insurance Information Institute, is always separate from your regular insurance policy. Standard polices will not include it because you must buy it as a separate policy. Standard policies may cover water damage from other situations, but they do not cover flooding from an outside source, such as a storm or a river.

The federal government provides flood insurance through the National Flood Insurance Program ran by FEMA. You can buy these policies through private insurance agents. Some agents may also offer their own policies. The federal government’s policy provides replacement cost for structures up to $250,000 and actual cash value cost for possessions up to $100,000. Policies offered by private insurance companies may offer higher limits.

All flood insurance policies usually offered very limited coverage for basements or other areas of a home that are underground. They may also have other restrictions based on your exact location. This information is for education only. It is not legal advice.