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Understanding Your Flood Policy

DAVID MILLER: When you protect your home and assets with a flood policy, it's important to understand what the policy actually covers.

If you live in an area prone to flooding, be sure not to keep valuable things in your basement.

While the N.F.I.P. policy covers everything your home needs to function --such as the H-VAC system, wiring, permanently installed appliances, as well as structural damage --it will not cover personal belongings.

ROBERT HARTWIG: And, after a flood, we're often asked about cash value versus replacement value.

It's important for policyholders to understand that their structure is insured for replacement value, which is the estimated cost of rebuilding any damaged structural elements; while contents are covered for actual cash value.

MILLER: Contents policies that cover personal belongings, such as clothing, furniture, electronic equipment, and portable appliances, are separate, however, again, remember: these things are not covered if they're in the basement.

HARTWIG: More information about flood risk and flood insurance can be found at; and visit for information about free mobile apps, especially our free Know Your Stuff - Home Inventory app, to help you prepare for a disaster.

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