What Flood Insurance Actually Covers (And What It Doesn’t)

So, What Does Flood Insurance Cover?

Flood insurance through the National Flood Insurance Program (NFIP) is designed to cover direct physical damage from flooding. That means rising water—not burst pipes, not a heavy rainstorm (unless it leads to flooding), and not mold that builds up over time.

You can choose to cover your building, your belongings, or both. Here's what each type of coverage typically includes:

Building Property Coverage

This covers the physical structure of your home or commercial building:

• Foundation, walls, and staircases
  
  
• Plumbing and electrical systems
  
  
• HVAC systems and water heaters
  
  
• Permanently installed cabinets, bookcases, and appliances
  
  
• Detached garages
  
  
• Solar panels and fuel tanks
  
  

For primary residences, payouts are based on the cost to repair or replace your home. For vacation homes or investment properties, coverage is based on actual cash value (which factors in depreciation).

Maximum limit: $250,000 (option to increase with purchase of excess flood insurance)

Personal Contents Coverage

This protects your personal belongings:

• Furniture, clothing, electronics
  
  
• Curtains and rugs
  
  
• Washer, dryer, and small appliances
  
  
• Art and valuables (up to $2,500)
  
  
• Inventory or raw materials for business owners
  
  

These items are generally reimbursed at actual cash value, meaning depreciation is considered.

➡️ Maximum limit: $100,000 (option to increase with purchase of excess flood insurance)

What Flood Insurance Does NOT Cover

Now here’s where confusion often happens. Flood insurance has clear exclusions. Let’s break them down:

❌ Additional Living Expenses
If your home becomes unlivable, your policy won’t cover hotel stays or temporary housing.

❌ Damage to Cars or Landscaping
Flood insurance won’t pay for flood-damaged vehicles, patios, decks, fences, pools, or plants.

❌ Sewer Backups (Unless Caused by Flood)
If your basement floods due to a backed-up sewer line, you’re not covered unless that backup was caused by a flood.

❌ Earth Movement
Even if a flood causes a landslide or sinkhole, the resulting damage isn’t covered.

❌ Neglect or Delayed Maintenance
If you don’t take action to protect your property after a flood warning, your claim could be denied.

❌ Damage Already in Progress
Flood insurance won’t cover damage that began before the policy went into effect.

❌ Loss of Use or Business Income
Flood insurance won’t pay for lost rent, lost sales, or business interruption. That’s where specialized commercial coverage may help.

Do You Actually Need Flood Insurance on the Cape or Islands?

If you live or work in Barnstable County, Dukes Country, or anywhere near the water, the answer is likely yes. Here’s why:

• Over 25% of flood claims come from homes outside FEMA flood zones.
  
  
• Coastal erosion, heavy rainfall, and overwhelmed drainage systems make our area especially vulnerable.
  
  
• Most standard home insurance policies do not include flood coverage.
  
  

And perhaps most importantly:
You can’t buy flood insurance when a storm is already on the radar. There’s typically a 30-day waiting period.

Let’s Make Sure You’re Covered Before It’s Too Late

We’ve helped hundreds of Cape and Island residents find affordable flood insurance options that actually fit their homes, businesses, and budgets. We know what to look for, what to ask, and how to avoid coverage gaps that could cost you everything.

Whether you’re insuring a year-round home in Yarmouth, a restaurant owner in Vineyard Haven, or a summer rental in ‘Sconset—we’ve got you.

Let’s talk about your risk—and your protection plan.   Reach out to McShea Insurance today to request a custom quote for: