Key Takeaways:
- A kind of property insurance called flood insurance protects a house against losses brought on by flooding.
- All types of properties—residential and commercial—can purchase flood insurance.
- Since flood damage is not covered by a standard homeowner’s insurance, it is safe to invest in a good flood insurance if you live in the flood prone area.
Flooding-related damage is typically not covered by regular homeowners’ insurance plans. Generally, flood insurance is offered as an additional insurance policy that homeowners must buy to enhance their current homes insurance policy; this will cover water damage resulting from flood incidents. Only some types of water damage, such as overflows caused by broken pipes, vandalism, and overflows from broken appliances, are covered by homeowners’ insurance. Water damage resulting from storm surges, for example, would need deferring to a flood insurance policy. Floods have the power to completely destroy communities and wreak catastrophic harm; in fact, they are the most common natural disaster in the US. The extent of the harm that even a few inches of water can do to your personal items and property might surprise you.
What is flood insurance?
A type of property insurance known as flood insurance protects a home against losses brought on by water damage, particularly from flooding. Levee dam collapse, storm surges from the coast, strong or persistent rain, melting snow, and obstructed storm drainage systems can all result in flooding. A flood is seen as a vis significant event in many locations, and if you do not have additional insurance, the damage or devastation it produces is not covered.
Does a standard homeowner’s insurance cover flood damage?
Natural disasters like storms and flooding do not provide coverage for water damage under an ordinary homeowners insurance policy. To be covered, homeowners need to have a separate flood insurance policy. Your house insurance policy should specify which sources of water damage are covered by insurance. Among them are:
- broken pipes as well as other plumbing problems
- Snow or rain-related damage
- Unintentional overflow from a broken item, such as a sump pump or water heater
- Seepage of water due to a roof leak
- Vandalism
An endorsement for sewer backup will cover water damage resulting from plumbing backups if you don’t intend to purchase flood insurance but yet want additional security.
Is flood insurance necessary?
If you live in a high-risk flood zone and your mortgage lender mandates it to comply with a legal requirement, you must have flood coverage. The lender will desire the additional protection offered by a flood insurance policy because they have a financial interest in the health of your house. Even though it’s not required by law, lenders may in some circumstances demand it. If the location of your home puts it at a moderate or low risk of flooding, you do not need to have flood insurance. Even if you don’t live in a high-risk location, it can still be a wise choice to sign up for flood coverage.
What does this mean for you?
A natural disaster called flooding frequently occurs as a side effect of storms, torrential rain, and other extreme weather conditions. However, if certain circumstances are met, they can occur anywhere, regardless of the state you live in. Owning a flood insurance policy will spare you time, money, and grief in the unlikely event of a flood, as ordinary homes insurance policies do not cover flood damage. If they have important assets to safeguard, homeowners can choose between a private flood insurer and a FEMA-backed flood insurance programme. If you live in a vulnerable floodplain, it can make sense in some situations to enrol in both for excess flood coverage.
