Understanding Home Insurance vs. Flood Insurance
As we enter storm season, it’s a good time to clarify some key differences between home insurance and flood insurance, especially as many homeowners might be surprised by what is—and isn’t—covered.
Home Insurance vs. Flood Insurance
Home Insurance: Your standard home insurance policy typically covers damage caused by events like fire, theft, windstorms, and hail. It also includes liability coverage if someone gets injured on your property. But one thing it doesn’t cover? Flood damage.
Flood Insurance: Flood insurance is a separate policy specifically designed to protect you from damages caused by flooding. It covers the structure of your home, foundation, electrical and plumbing systems, appliances, and personal belongings. If you’re in a flood-prone area, lenders often require this additional coverage, and it’s a smart investment for peace of mind.
Flooding vs. Storm Damage
Flooding: Insurance companies define flooding as rising water from a natural source (river, lake, or ocean) that overwhelms normally dry land. This can also include heavy rain or storm surge that causes water to enter your home. Flooding usually impacts multiple homes in a neighborhood.
Storm Damage: On the other hand, storm damage—such as wind or hail damage—is typically covered by your standard home insurance. This kind of damage is caused by weather events that directly impact your property (like a tree falling on your roof), but it doesn’t involve water rising from a natural source.
What You Can Do
It might be worth having a conversation with your insurance agent about whether adding flood insurance or an endorsement to your home insurance policy makes sense for you. If you’re uncertain about your current coverage, this could be a good time to review and make sure you’re fully protected.
As always, I’m here to assist you with any mortgage-related questions.
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Blog post date: Thursday, October 17, 2024
