Homeowner’s Vs. Flood Insurance Who Covers What? (2024)

When massive storms rage through our communities, they can leave a wide path of destruction and flooding. When the unthinkable happens, do you know which insurance policy covers what? The rules can be confusing, so let’s clear some things up.

Homeowner’s insurance policies are different from flood insurance policies. With weather patterns continually changing, purchasing flood insurance along with your homeowner’s insurance is more of a necessity than an option.

In this article, the team at @ConsumerLiving explains the differences between flood insurance and homeowner’s insurance, what they cover, and why you need both.

Let’s look at the principal differences between the two types of policies.

Flood Insurance — Covers damages resulting from “acts of nature” which include storm surge, overflowing rivers, rising floodwaters, and mudflow. Homeowner’s insurance does not cover flood damage.

Homeowner’s Insurance — This type of policy covers damages caused by appliance malfunctions, plumbing leaks, accidental overflows, water heater malfunctions, and pipe bursts.

Let’s take a closer look at homeowner’s insurance. In most cases of a pipe burst, faulty plumbing, appliance malfunctions or unintentional overflows, your homeowner’s insurance will likely cover the flood damage.

Be aware of the following:

Sudden and Accidental — Floods which result from an overflowing bathtub, sink, or other vessel are considered “sudden and accidental” and will typically be covered.

Appliance Malfunction — Flood damages resulting from a malfunctioning appliance are covered. However, if the insurance provider proves that you neglected regular or reasonable maintenance on the appliance in question (washing machine, refrigerator, dishwasher, etc.), the damages will not likely be covered.

Your insurance policy covers the flood damage and ensuing cleanup. The appliance, however, is typically your responsibility to replace.

Water Heater Malfunction — Flooding and damages resulting from a malfunctioning water heater are treated the same way as an appliance malfunction. Again, if the insurance provider proves that you neglected the regular maintenance or upkeep of the water heater, the damages will not be covered.

Pipe Burst — Flooding resulting from frozen pipe bursts is covered as long as you are residing in the structure at the time of the incident, or you took preventative measures before leaving home on vacation or for an extended period of time.

Tree Fall — Flooding which results from roof damage or broken pipes after a tree lands on your home also falls within this coverage.

Note: Earlier, we stated “Homeowner’s insurance does not cover flood damage” in reference to weather-related flooding and flood insurance. While this is true, consider this scenario:

A hurricane barrels through your city. Your home is on high ground, so flood waters never reach it. However, your home still floods due to roof damage caused by high winds and debris.

If your homeowner’s insurance covers wind damage, or you have a rider policy for it, it is this policy which will provide some protection.

Since the flood waters, storm surge or rising waters never reached your home, flood insurance is not applicable.

Flood insurance is the only type of coverage that will reimburse you for flooding caused by storm surge, overflowing rivers, rising flood waters, or other external weather-related forces. Again, homeowner’s insurance does not cover floods by this definition.

There are two principal types of flood insurance. One is for the building or structure, and the other is for the contents (your personal belongings) within that structure.

Each policy has its own deductible and is purchased independently of one another (preferred risk policies may contain the option to combine the two, but their deductibles are always separate).

With all of the crazy weather patterns and surprise storms we have seen over the past two decades, continuing without flood insurance is a growing risk.

First, let’s define what a flood is. The National Flood Insurance Program (NFIP) defines a flood as a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow.

To better determine your need for flood insurance, FEMA has a Flood Map Service Center which uses an interactive map and offers instructions to help you make this determination.

In high-risk flood zones, you may be mandated to purchase NFIP flood insurance. To learn more about the NFIP, watch this video.

Insurance protects your investment, property, and loved ones. Knowing which coverage to use when is vital in getting your life back to normal after a flood-related disaster.

When purchasing homeowner’s or flood insurance, you now possess the knowledge and tools to acquire the right policy. You can now clearly identify what is covered and excluded from either of the insurance policies.

Over the past two decades, our communities have witnessed flooding in areas that were once believed to be out of danger. If you do not have flood insurance, you are gambling the value of your home and its contents against mother nature. As with all insurance policies, their real value is revealed when we need to use it.

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