The concept and the construction of modular graph functions are generalized from genus-one to higher genus surfaces. The integrand of the four-graviton superstring amplitude at genus-two provides a generating function for a special class of such functions. A general method is developed for analyzing the behavior of modular graph functions under non-separating degenerations in terms of a natural real parameter $t$. For arbitrary genus, the Arakelov Green function and the Kawazumi-Zhang invariant degenerate to a Laurent polynomial in $t$ of degree $(1,1)$ in the limit $ttoinfty$. For genus two, each coefficient of the low energy expansion of the string amplitude degenerates to a Laurent polynomial of degree $(w,w)$ in $t$, where $w+2$ is the degree of homogeneity in the kinematic invariants. These results are exact to all orders in $t$, up to exponentially suppressed corrections. The non-separating degeneration of a general class of modular graph functions at arbitrary genus is sketched and similarly results in a Laurent polynomial in $t$ of bounded degree. The coefficients in the Laurent polynomial are generalized modular graph functions for a punctured Riemann surface of lower genus.