Does Homeowner’s Insurance Cover Flood Damage?

12/16/2022 (Permalink)

If you’re worried about flood damage, make sure to check your homeowner’s insurance policy.

Floods are one of the most common natural disasters in the United States. In fact, according to FEMA, floods are the nation's most costly and frequent natural disaster. The Federal Emergency Management Agency estimates that over a 20-year period, about two out of three American homeowners will experience at least one flood event costing them $1,000 or more. While homeowners insurance does not cover damage caused by flooding (with some exceptions), you may be able to purchase flood insurance through the National Flood Insurance Program (NFIP).

What To Do If Your Home Floods

When you’re faced with the prospect of dealing with flood damage, the first thing you should do is call your insurance company. Your homeowner's policy may cover some or all of this damage, but it’s important to know what rules apply.

If you don’t have flood insurance, then there are a few other things to consider: You might not be covered by your homeowner's policy if you live in an area prone to flooding, such as near rivers or streams that overflow their banks during heavy rains.  If this is the case for you, then unless there is another form of coverage (such as earthquake insurance), damage from flooding can fall on your shoulders alone and cost thousands of dollars out-of-pocket!

If you do have flood insurance in place through NFIP (National Flood Insurance Program), then here's what happens when a flood hits: Your home will most likely be covered up to its limit amount listed on your FEMA policy; however, if any repairs exceed that amount then they'll need approval before being made by FEMA itself (and maybe even require an inspection).

Consider Flood Insurance

Your homeowner's insurance policy probably won't cover flood damage, so consider getting flood insurance for your home.

Flood insurance is a separate policy that can be purchased through the National Flood Insurance Program (NFIP) and many private insurers. It covers losses from water damage due to floods, which are typically caused after heavy rainfall or snowmelt when rivers rise above their banks and overflow onto land.

Flood policies differ from standard homeowners' insurance in three important ways: they're not required by mortgage lenders, they typically offer more coverage than basic policies, and they usually carry higher premiums than other types of homeowner's coverage.

Avoiding Financial Disaster

In addition to providing coverage for the building and its contents, a standard homeowners insurance policy provides liability coverage in case you or your family members are injured by someone else.

Homeowner's insurance generally does not cover damage caused by floods. However, if you live in a flood-prone area or have been advised by your local government agency to purchase extra protection, you may be able to purchase separate flood insurance from the National Flood Insurance Program (NFIP). You can also buy flood insurance from private insurers who sell policies through the NFIP. It is important that you understand exactly what types of losses are covered under both programs before purchasing any type of supplemental flood protection policy

Mold Removal Isn’t Covered

A mold problem is a common issue after a flood. Mold can be very dangerous, and it can also ruin your property by destroying its walls, floors, and other surfaces. Unfortunately, many homeowners’ insurance policies do not cover mold removal costs.

If you’re worried about flood damage, make sure to check your homeowner’s insurance policy. If it doesn’t cover flood damage, consider getting a separate policy through the National Flood Insurance Program (NFIP) for your home. Even if you don’t live in a flood zone, flooding can happen anywhere and at any time—and sometimes even outside of a high-risk season.

When you experience a flood in your Cincinnati, OH home or business, give SERVPRO of Northwest and Northeast Cincinnati a call!