What are the two types of flood insurance coverage available?

Building coverage and contents coverage are the two primary types of flood insurance available under the National Flood Insurance Program (NFIP).

Building coverage provides financial protection for the structure of a home or building itself, including its foundation, walls, and essential systems such as plumbing, electrical, and heating. It can also cover certain fixtures, such as central air conditioning equipment, furnaces, and water heaters, reinforcing the structure's integrity against flood damage.

Contents coverage, on the other hand, protects personal belongings within the insured structure, like furniture, electronics, clothing, and appliances. This coverage is crucial for homeowners and renters, as it ensures that their possessions have financial protection in the event of flooding.

These two types of coverage can be purchased separately or together, allowing property owners to tailor their flood protection to their specific needs. Understanding the distinction between building and contents coverage is essential for effectively managing flood risks and assessing one's insurance needs.