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The Truth About Flooding: Limitations of Basement Coverage on FEMA Flood

New Jersey Flood Insurance

In the past few years, New Jersey has been affected by an increasing number of large storms. We’ve seen many customers suffer damage to their homes caused by outright flooding. As such, we are now suggesting that all homeowners in NJ carry flood insurance or increase their sump overflow coverage, particularly if they have a finished basement.

Home insurance policies generally do not cover flood damage, and sump or sewer backup coverage is limited.

NJ Flood Insurance Coverage Limitation

This post will focus on NJ flood insurance coverage limitations in most basements. “Walkout basements” are generally exempt from such limitations, but check with your agent to be certain of your coverage.

  • Central air conditioners;Cisterns and the water in them;
  • Drywall for walls and ceilings in a basement and the cost of labor to nail it, unfinished and unfloated and not taped, to the framing;
  • Electrical junction and circuit breaker boxes;
  • Electrical outlets and switches;
  • Elevators, dumbwaiters, and related equipment, except for related equipment installed below the base flood elevation after September 30, 1987;
  • Fuel tanks and the fuel in them;
  • Furnaces and hot water heaters;
  • Heat pumps;
  • Nonflammable insulation in a basement;
  • Pumps and tanks used in solar energy systems;
  • Stairways and staircases attached to the building, not separated from it by elevated walkways;
  • Sump pumps;
  • Water softeners and the chemicals in them, water filters, and faucets installed as an integral part of the plumbing system;
  • Well water tanks and pumps;
  • Required utility connections for any item in this list; and
  • Footings, foundations, posts, pilings, piers, or other foundation walls and anchorage systems required to support a building.
  • Clean Up
  • Air conditioning units, portable or window type
  • Clothes washers and dryers; and
  • Food freezers, other than walk-in, and food in any freezer.

Source: Fidelity National Document, September 2011.

If it is not on this list and it is your basement, it is not covered.

For more information on flood hazards, visit FEMA.

Other Posts in our Truth About Flooding series:

Flood Insurance Pricing

The Truth about Flood Insurance

NJ Flood Insurance: Sump Pump, Drain and Sewer Overflow Coverage

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