Understanding Flood Insurance

The National Flood Insurance Program (NFIP), administered by the Federal Emergency Management Agency (FEMA), provides flood insurance to property owners, renters, and businesses in participating communities.

Scalzo, Zogby & Wittig, Inc. is a provider of flood insurance to our clients here in the Utica area. Because standard homeowners and renters insurance policies in New York State exclude flood damage, the NFIP fills a critical gap.

It offers financial protection against one of the most common and costly natural disasters in the United States. One that we have suffered often here in the Mohawk Valley.

NFIP coverage is divided into two main categories: building property coverage and personal contents coverage. These policies can be purchased separately or together, depending on the policyholder’s needs.

1. Building Property Coverage
This component protects the structure of the insured property, including:

• Foundation walls, anchorage systems, and staircases
• Electrical and plumbing systems
• Furnaces and water heaters
• Refrigerators, stoves, and built-in appliances
• Permanently installed carpeting
• Detached garages (up to 10% of the building coverage limit)

As of 2025, the maximum limit for residential building coverage is $250,000, while commercial structures can be insured up to $500,000. It’s important to note that this coverage applies only to the insured building and its essential systems—not to exterior features such as decks, fences, or swimming pools.

2. Personal Contents Coverage
This insures the contents of the home or business, including:

• Personal belongings (clothing, furniture, electronics)
• Portable appliances (microwaves, window air conditioners)
• Curtains
• Washers and dryers
• Valuable items like artwork and furs (up to $2,500 per item)

The coverage limit for contents in residential properties is $100,000, while commercial properties can have contents coverage up to $500,000. This coverage is optional and must be purchased separately from building coverage. Importantly, contents are only covered if they are located inside the insured building.

Exclusions and Limitations
The NFIP has some notable exclusions. For example, it does not cover:

• Temporary housing or additional living expenses.
• Loss of business income.
• Most outdoor property including landscaping, septic systems, decks and patios, fences, and swimming pools.
• Mold or mildew damage not caused by a covered flood.
• Personal property kept in basements.
• Cars and most self-propelled vehicles, including their parts.
• Currency, precious metals, stock certificates, and other valuable papers.

Additionally, coverage is based on actual cash value (ACV), which accounts for depreciation, for most items. However, homeowners can obtain replacement cost coverage for single-family primary residences under certain conditions.

Community Participation and Requirements
To be eligible for NFIP insurance, your community must participate in the program by adopting and enforcing FEMA-approved floodplain management regulations. Premiums are influenced by your property’s location within the designated flood zone, elevation, and construction features.

Get Flood Insurance From Scalzo, Zogby & Wittig, Inc.
The NFIP provides essential financial protection for property owners and renters in flood-prone areas. We offer the National Flood Insurance Program to our Utica area clients and we encourage you to call us with your questions and to get a quote.

By understanding the specific coverages and limitations of the program, individuals and businesses can make informed decisions to better protect their assets.

While NFIP coverage may not fully restore losses after a major flood, it significantly reduces the financial burden, helping communities recover more quickly and sustainably.

Until next time,

Your SZW Team

SZW Insurance is your Utica area Trusted Choice™ independent insurance agent. Call us for a quote on insurance for your home, car, business, or life at 315.792.0000. Or request a quote here.