Standard home and commercial property insurance excludes flood damage. You need a separate flood policy for that. When it comes to flood insurance, two main types of protection work together: building coverage and contents coverage. While they sound similar, they protect very different aspects of your property. Understanding the difference ensures you’re not left paying for damage that your policy through your insurance representative at Armadillo Insurance Agency, serving Austin, TX, doesn’t include.

What Building Coverage Protects in a Flood Insurance Policy

Building coverage applies to the structure itself, including the physical components of your home or business. This includes the foundation, walls, floors, roof, electrical systems, plumbing, and built-in features such as cabinets, water heaters, and air conditioning units. In the event of a flood, this coverage pays to repair or rebuild what is considered permanently attached to the property.

If you own a home, this protection ensures the core structure of your property can be restored after water damage. For business owners, it also includes structural improvements like walk-in coolers or permanently installed machinery. However, it does not cover the contents inside the building; furniture, equipment, or personal items require separate protection under contents coverage. Building coverage offered under the National Flood Insurance Program (NFIP) has limits and exclusions on how much it will reimburse you. This may not be enough for some property owners. Private flood insurance policies may offer higher coverage limits and additional protections. Our team at Armadillo Insurance Agency is happy to explain the details.

What Contents Coverage Protects in a Flood Insurance Policy

Contents coverage focuses on the belongings you keep inside the structure of your home or building. It covers items such as furniture, clothing, electronics, and portable appliances. For businesses, this includes inventory, computers, and tools that are not permanently fixed in place.

Contents coverage is optional under NFIP. Without it, you’ll be responsible for replacing everything inside your home or office on your own. Coverage limits for contents differ for residential and commercial properties, so reviewing your policy is key.

Floods don’t discriminate between drywall and furniture. Having both building and contents coverage ensures you can rebuild and refurnish after a flood. Skipping one or the other could leave a serious gap that you only notice after the floodwaters rise. Contact your insurance representative at Armadillo Insurance Agency, serving Austin, TX, to learn more about flood protection for your home or business.