Water Water Everywhere
Are You Insured?
Q. Will my homeowner’s insurance policy cover me if I incur flood damage to my home?
A. No, flood insurance is required to cover flood damage.
Q. What is flood insurance?
A. Floods are defined as when a large amount of water covers an area of land that is normally dry. Flood insurance covers physical loss caused by floods, flash floods, related erosion, rainstorms, hurricanes, and snow melt. It is offered under a Federal government program known as the National Flood Insurance Program.
Q. Do I purchase flood insurance through my homeowner’s insurance agent?
A. Yes, you can get flood insurance through the company that provides your home and auto insurance.
Q. Is it worth price shopping for flood insurance?
A. No, even though flood insurance is expensive, the Federal government sets the rates.
Q. My home isn’t located in a high risk flood zone. Do I need flood insurance?
A. Flooding can affect you even if you are not in a high risk area. 25% of all claims occur in “low to moderate” risk areas. If you are located anywhere in a flood zone, insurance is recommended and would be required by your mortgage company.
Q. Is flood insurance only available to homeowners?
A. No, renters, business, and condo owners may purchase flood insurance to protect their belongings.
Q. If my sump pump fails, is that the same as flooding?
A. No, a sump pump failure that results in a “flooded” basement is a different type of claim and would fall under your homeowner’s insurance policy but ONLY IF you have an endorsement for water/sewer backups.
Q. What is covered under a water/sewer backup endorsement on my homeowner’s policy?
A. The endorsement you select for water/sewer backups usually has a dollar limit associated with it. The insurance will cover damage caused by the sewer/water backup up to that limit but not the equipment that actually failed.
For example, if your sewer line clogs/breaks and causes a sewage backup in the house, insurance would cover cleanup and replacement of damaged drywall, flooring, furniture, etc. but it would not cover the cost of clearing or replacing the sewer line that caused the damage.
Q. Are there any cases of water damage that would be covered by a standard homeowner’s insurance policy without the endorsement for water/sewer backups?
A. Standard homeowner’s policies cover sudden and accidental losses and this would include water damage so long as the water damage was not caused by a flood or a backup of some sort. For example, if a hurricane takes part of your roof off and rainwater does damage to the interior of your home, homeowner’s insurance should cover that damage.
However, insurance is not intended to cover neglect or poor maintenance practices. If a pipe is leaking and you take no actions to repair the leak, insurance will not likely cover the resulting water damage.
***It is always best to discuss your insurance coverage with your
insurance agent to ensure you have the right amount of coverage
for your unique situation and needs.***
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