The short version

Flood insurance through the National Flood Insurance Program is sold as two separate coverages, and this is the single most misunderstood thing about it. Building coverage protects the structure. Contents coverage protects your belongings. They are purchased separately, and they carry separate deductibles.

For a residential policy the maximums are $250,000 for building and $100,000 for contents. Buy only the building coverage and everything inside the house is uninsured.

You need it because flood is excluded from a standard homeowners policy. There is no version of a Home Insurance policy that covers flood.

What building coverage includes

The physical structure and its foundation. Plumbing and electrical systems. Central air and heating systems. Attached bookcases, cabinets, carpets and paneling. A detached garage. Well water tanks and pumps. Solar energy equipment.

Note what that list is: the house and the things built into it.

What contents coverage includes

Clothing, furniture and electronic equipment. Curtains. Some portable appliances. Freezers and the food in them. Carpets installed over wood floors. Washer and dryer. Certain valuables such as artwork, up to $2,500.

Renters should note that contents is the coverage that applies to them — a tenant has no interest in the building and does not need building coverage.

What Flood Insurance does not cover

This list matters as much as the other two.

Living expenses. NFIP Flood Insurance does not pay living and financial costs. This is the gap almost nobody knows about, and it is brutal: a homeowners policy includes loss of use coverage that pays for somewhere to stay when your home is unlivable, and Flood Insurance has no equivalent. A flooded family can be displaced for months with nothing paying for temporary housing.

Damage that could have been avoided. Outdoor property. Some valuables. Most vehicles — a flooded car is a comprehensive claim on your Auto Insurance, covered in whether Car Insurance covers flood damage, not a flood policy claim.

The two-deductible point

Because building and contents are separate purchases, they carry separate deductibles. A single flood that damages both means both deductibles apply. Budget for that rather than discovering it during a claim.

Why Charlotte homeowners should not dismiss this

Flood risk is not confined to coastal counties or to mapped high-risk zones. Heavy rainfall, overwhelmed storm drainage, creek and stream flooding, and new upstream development all produce flooding well inland. A property that has never flooded is not a property that cannot.

If you are outside a high-risk zone, that generally makes the coverage less expensive rather than unnecessary.

What to do with this

Buy both coverages. Building alone leaves your belongings uninsured; contents alone leaves the structure uninsured.

Plan for the living-expense gap. Know that nothing in the flood policy houses you.

Check the limits against your home. If your home is worth substantially more than $250,000 to rebuild, the NFIP maximum will not cover it and excess flood coverage is worth discussing.

Do not wait for a forecast. Flood policies typically carry a waiting period before coverage takes effect.

How The Jordan Insurance Agency helps

The Jordan Insurance Agency is an independent agency in Charlotte. We will look at your actual flood exposure, explain the building-versus-contents split in plain English, and tell you honestly whether the NFIP maximums are enough for your home or whether you need more.