When it comes to protecting your home from water damage, many homeowners assume their standard home insurance policy has them completely covered, however, a critical distinction exists between water damage and catastrophic flooding. Without flood insurance, your home and finances could be at serious risk - understanding what is and isn't covered can help you decide about securing the right coverage.
What Water Damage is Covered by Standard Homeowners Insurance?
A standard homeowners insurance policy may cover certain types of sudden and accidental water damage including:
Sudden and Accidental Water Damage: If a pipe bursts causing water damage inside your home, your policy will usually cover the cost of repairs, up to the selected limits.
Roof Leaks: If a storm damages your roof or winds blow rain inside the attic vents, allowing rainwater to seep in, your insurance may cover the necessary repairs and interior damage.
Faulty Appliances: If your washing machine overflows or your water heater malfunctions, your homeowners policy will likely provide coverage.
While your standard homeowners policy coverage helps with certain water related incidents, it does not extend to flooding which is an entirely separate risk.
What is Flooding?
Flooding, or rising water, occurs in every state and in any place where it rains. Flooding basically is the overflowing of water onto land that is normally dry. Flooding could come in the form of storm surge when winds push ocean water into the land, flash floods from heavy rain without enough places for the sudden deluge of water to go, and quick overflowing rivers and streams.
What is NOT Covered? The Importance of Flood Insurance
Standard homeowners insurance policies do not cover damage caused by flooding. The following are common flood-related incidents that require separate flood insurance:
Hurricanes and Storm Surges: If heavy rainfall or storm surge from a hurricane causes widespread flooding, homeowners insurance will not cover the damage.
Overflowing Rivers and Lakes: If a nearby body of water like a canal, stream, or lake overflows due to excessive rain and the water enters your home, it is normally considered flood damage and is excluded from standard coverage.
Groundwater Seepage: If rising water levels seep into your home’s foundation, standard homeowners insurance will not cover damages.
Flash Flooding: if heavy rainfall leads to sudden extreme extensive flooding in your area, it is not covered by your standard policy.
The only way you can protect against these risks is by purchasing a flood insurance policy.
Why You Need Flood Insurance
Floods are among the most common and costly natural disasters in the United States. According to FEMA, just one inch of water in your home can result in $25,000 of damage. And even though you may not live near water, you home can still be at risk of flooding. The ever-changing landscape of Florida with new construction, road work, and land clearing impacts where and how much water the ground absorbs, and the stormwater drains collect.
Flooding Can Happen to Anyone
It is important to be proactive and plan for a flooding event:
- Assess your flood risk at FEMA’s Flood Map Service Center.
- Know an average of 40% of all flood claims come from low-to-moderate risk areas.
- Have a Flood Emergency Preparedness Plan
- Remember where it rains, it can flood.
- Add flood insurance to your home’s insurance coverage.
Where to Get Flood Insurance
Flood insurance is primarily offered through the National Flood Insurance Program (NFIP), but private insurers also provide policies with additional coverage options. Your home insurance agent can help you determine the best flood insurance policy for your needs.
Don’t Wait Until It’s Too Late
Standard homeowners insurance does not cover flood damage. Without flood insurance, you may face devastating financial losses if flooding occurs. Plan ahead and protect your home and belongings by securing the right coverage today as there is typically a 30-day waiting period for a flood policy to go into effect.
By understanding the water damage limitations of your standard homeowners insurance policy and the necessity of obtaining flood insurance, you can ensure you are fully protected from potential water damage disasters.
Interested in exploring your flood insurance options with Ovation Home Insurance Exchange and how to safeguard your property against the threat of flooding? Contact your agent or get a quote from our website today.