Does a Homeowners Insurance Policy Cover Flood Damage?
Updated: May 10, 2022
A standard homeowners insurance policy can be essential to protecting a home against damage caused by multiple types of perils like fire. However, when it comes to water damage, it’s not as easy as yes or no. A homeowner’s policy can protect your home from some water-related types of damage, like a burst pipe or rainwater coming through the roof (read your policy to determine coverage). Homeowners insurance policies typically do not provide coverage for water damage caused by a flood. For that, you will need flood insurance.
Flood policies are sold and administered by both the private market and the federal government’s National Flood Insurance Program (NFIP).
It is important to understand how a flood is defined by both the
NFIP and the private market. FEMA defines flood as a general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area or of 2 or more properties. For a full definition of what FEMA determines is a flood, view their NFIP summary of coverage pdf. If you are looking for a broader definition of flood, many private flood insurance carriers often define flood differently, which can trigger coverage more easily. Also, you may find that there are more coverage options with a private flood policy, like personal property in a basement. See our comparison below for some examples.
Let's Compare | NFIP | |
Compliant with State Insurance Laws | Yes | No |
Max Residential Building Coverage Amount | $4,000,000 | $250,000 |
Max Content Coverage Amount | $500,000 | $100,00 |
Additional Coverage Options Available** | Additional Living Expenses, Debris, Removal & Carports | None |
Basement Coverage* | Paint, Flooring, Baseboards, Personal Property and more. | Drywall (No Tape or Mud) |
Additional Fees Required for Coverage of More Than One Structure | No | Yes |
Waiting Period for Policy Inception | 15 Days | 30 Days |
According to FEMA records from 2010 to 2018, the annual cost of flood damage nationwide was approximately $17 billion dollars, a staggering figure that puts many home and business owners in a dangerous position. And unfortunately, too many property owners think they have protection against the peril of flood under their homeowner’s insurance policies; they do not.
As floods continue to threaten property owners nationwide, it’s important to get educated about flood insurance and make sure your property is properly protected. Go to FloodPrice.com to find facts about how to stay protected, and get a free online quote by visiting our quote page to make sure you have the protection you need in the event of a flood.
