Does Home Insurance Cover Flood Damage?

Most homeowners insurance policies don’t cover flood damage; however, it can be essential, especially if your home is in an area with a risk of flooding. Even a few inches of water can have costly consequences. Without flood insurance, you may have to pay for expensive property damage out of pocket.

Does Homeowners Insurance Cover Flood Damage?

Many homeowners mistakenly assume that their standard homeowners insurance policy covers flood damage. Unfortunately, this is not the case. Standard policies typically do not provide coverage for flood-related losses. Without flood insurance, you may be in a dire financial situation if your home sustains flood damage.

How Does Flood Insurance Work?

Flood insurance is a separate policy designed to cover losses caused by flooding. Regular premiums are paid to maintain coverage after purchasing a policy and determining coverage limits. In the event of a flood, you must contact the insurance company, document the damage and file a claim with supporting documentation. An adjuster will assess the damage, and if the claim is approved, a payout will be provided based on the policy’s coverage limits and deductibles.

What Can Flood Insurance Cover?

Flood insurance typically covers two main components: building property coverage and personal property coverage.

1. Building property coverage may help cover the physical structure of your property, including the foundation, walls, electrical and plumbing systems, appliances and fixtures. It may also cover built-in items such as carpeting, cabinets and bookcases.

2. Personal property coverage may help protect your belongings and contents inside the insured property, such as furniture, electronics, clothing and valuables. However, certain high-value items, such as artwork, jewelry and collectibles, may have coverage limits. Additional coverage or separate policies may be required for complete protection.

It’s important to note that flood insurance only covers damage caused by flooding. It does not cover damage caused by other types of water-related events, such as sewer backups or water leaks, unless directly caused by a flood. Each flood insurance policy has specific coverage limits, deductibles and exclusions, so reviewing the policy carefully and understanding its terms and conditions is essential.

Where Can I Get Flood Insurance in Florida?

Understanding your flood risk, the limitations of standard homeowners insurance and the benefits of flood insurance can help you make an informed decision to protect your home and your financial well-being. Contact Affiliated Agency of Ocala to discuss your home and flood insurance options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.