As America’s most common and costly natural disaster; FEMA estimates $2.4 billion in flood losses annually. While a standard homeowners insurance policy does provide protection for some water-related losses, it specifically excludes flood damage. To ensure full coverage against flooding, purchasing a separate flood insurance policy is essential. Let’s break down what’s covered and what’s not so you can be prepared before a disaster strikes.
What is a Flood?
It is a common term to say you have a “flood” when dealing with a broken water pipe soaking your carpet, and although you have a lot of water, the technical insurance term for “flood” is basically “excess of water on land that is normally dry.” The difference is sopping wet carpet and flooring from a burst pipe would typically be covered under your standard homeowners insurance policy as “water damage” and water entering from outside of your home is not.
What Water Damage Does Your Homeowners Insurance Cover?
A standard homeowners insurance policy may cover certain types of sudden and accidental water damage including:
- Burst Pipes- If a pipe unexpectedly bursts in your home and causes water damage, your insurance will likely cover repairs to the structure, walls, floors, and other parts of the house up to the indicated limits.
- Appliance Malfunctions- Water damage caused by washing machines, dishwashers, water heaters, or refrigerators due to mechanical failure are typically covered.
- Roof Leaks from Storms- If wind or hail damages your roof, allowing rainwater to enter your home, your policy may cover the water damage.
- Plumbing Overflows- Sudden overflow of water from plumbing, heating, or air conditioning units may be included in your coverage.
What is NOT Covered? Why You Need Flood Insurance
While homeowners insurance covers some water related issues, it does not cover flood damage. Flooding is defined as water entering your home from an external source, such as heavy rainfall, storm surges, of overflowing rivers and lakes. Here are some scenarios most homeowners insurance does not cover:
- Rising Groundwater- If your home is damaged due to excessive groundwater or prolonged rainfall that leads to flooding, your homeowners policy won’t cover the losses.
- Storm Surges and Coastal Flooding- If a hurricane or tropical storm pushes ocean water into your home, that damage is not covered under homeowners insurance.
- Flash Floods from Heavy Rains- Even if it’s not a named storm, heavy rainfall can cause flash floods damaging homes.
- Overflowing Rivers, Lakes, Canals, and Streams- If a body of water near your home rises and floods your property, your homeowners insurance won’t protect you.
The Importance of Flood Insurance
Flood insurance is available through the National Flood Insurance Program (NFIP), managed by FEMA, or through private insurers. There are two types of flood insurance: building and personal property. It is encouraged to purchase both types of coverage to ensure that you are fully covered.
What is Covered with Flood Insurance?
Building Protection: Covers damage to the foundation, walls, permanently installed bookcases and cabinets, electrical and plumbing systems, refrigerators, stoves, and built-in appliances.
Personal Property Protection: Includes personal belongings such as clothing, furniture, electronics, portable microwaves, portable air conditioning units, washer and dryers.
Don’t Wait Until You’re Under Water
Many homeowners make the mistake of thinking they don’t need flood insurance until after disaster strike. Flood insurance typically has a 30-day waiting period before coverage begins, so waiting until a storm is looming or entering Florida’s peak thunderstorm season means you’ll be unprotected.
Protect Your Home and Finances Today
If you live in an area prone to heavy rain, hurricanes, or coastal or river flooding, investing in flood insurance is a smart decision. Even if you are not in a high-risk zone, flood damage can happen anywhere. Remember where it rains, it can flood.
Contact Windward Insurance Agency today to review your coverage needs, learn more about your options and secure the coverage you need before the next storm hits. Get started with an online quote or call us at (866) 231-2433.
