Flooding is one of the most expensive disasters that can happen to your home or business. Unfortunately, it is also becoming an increasingly common occurrence. Standard insurance policies generally do not provide coverage for flood damage, so many people seek out flood insurance. However, policies issued through the National Flood Insurance Program or private companies often have serious limits that might keep you from recovering after a major loss.

Excess flood insurance can help in those situations. It is designed to kick in when your primary policy’s benefits become exhausted. It may also cover the cost of replacement for personal property damaged in a flood. Here are two situations where you should consider adding this type of coverage.

Your Primary Coverage is Through the NFIP

National Flood Insurance Program coverage is capped at $250,000 for residential properties. Any losses above that amount become your responsibility. That makes excess insurance attractive for homeowners that are covered by an NFIP policy.

You Have a High-Value Home

Coastal properties often come with a hefty price tag. In addition, the rising costs of building materials and construction can make the price of rebuilding higher than anticipated. Excess flood policy can minimize your personal losses for high-value properties by paying for damages over your primary policy’s limits.

Not everyone needs to carry flood insurance. However, if you own a high-value home in an area that is prone to flooding or have an NFIP policy, excess flood insurance can help protect you from excessive losses.