When trying to get the right coverage for weather-related damages, it’s important to know the difference between what insurance companies consider flood damage vs water damage.
A basic homeowners insurance policy will only cover water damage. Flood damage, however, requires a separate flood insurance policy.
Flood Damage vs Water Damage
Flood damage is generally considered damage caused by rising or overflowing water that enters your home either due to a storm surge or rain-induced flooding after building up on once dry land.
Water damage on the other hand is when water damages your home before it comes into contact with dry land, which includes heavy rainstorms or hail storms which allow water to leak through broken windows or roofs.
What does flood insurance cover?
Flood insurance will cover any physical damages to your property and possessions caused by disasters such as storm surges and rain-induced flooding, which are typically not covered by homeowners insurance or hurricane insurance.
What are some exclusions of flood insurance?
Flood insurance does have some limitations such as:
- Damages caused by mold or mildew after the flood
- Certain valuables such as money, jewelry or documents
- Property outside of the insured building such as patios, hot tubs and pools, gazebos, landscaping, fences, etc.
- Flooding caused by factors within the home such as an overflowing toilet (though this may be covered by your homeowners insurance)
- The flood must cover a wider area than just your home or have affected at least one other property
- Temporary living expenses or business interruption
- Below ground areas or areas below sea-level or possessions in these areas
If you live in an area prone to flooding, be sure to invest in flood insurance. If you run into problems receiving compensation for your insurance claim, contact an insurance attorney for legal assistance.