What is Flood Insurance?

When it comes to protecting your home, understanding the nuances of insurance coverage is crucial, especially when it involves flood-related damages. Many homeowners are unaware of the difference between water damage and flood damage. Today, we are here to clarify the differences and provide guidance in best insuring your home and property.

The Difference Between Water Damage and Flooding

Regular homeowners insurance typically covers damages caused by various perils, such as fire, theft, and certain types of water damage, like burst pipes. However, it often excludes coverage for flooding from external sources, such as heavy rainfall or rising river waters, which is where flood insurance comes into play. Flood insurance is a separate policy than basic homeowners insurance and specifically protects against losses caused by flooding, providing financial assistance for repairs to your home and personal property when inundated by water from external sources. Covered in your homeowners policy is damage from sudden internal water, like a burst pipe or burst water heater. It does not cover things like a slow leak in your kitchen or bathroom.

Do I Need Flood Insurance?

Unless you are in a flood zone, most mortgage companies do not require flood insurance. Typically, things like sump pumps, gutter maintenance and drainage, and basic home care can help keep your property dry. High amounts of rainfall, like we saw with Helene, can alter that. If you are interested in learning more about getting a quote for flood insurance, reach out to your advisor or give FCI Agency a call today.