Is Flood Damage Covered by Homeowners Insurance?
Water damage is a homeowner's worst nightmare, capable of wreaking havoc on your most cherished investment – your home. Whether it's a burst pipe, a leaky roof, or a natural disaster, safeguarding your property against water-related perils is crucial. Understanding the difference between what your homeowners insurance covers and the additional protection that flood insurance provides is critical to ensure you are fully safeguarded against flooding.
Homeowners Insurance: What's Covered?
A homeowners insurance policy is essential for protecting your home against a variety of risks, including fire, theft, and some types of water damage. For example, it may cover damage caused by burst pipes or the weight of ice, snow, or sleet. (Make sure to read your policy to verify coverage). However, not all water-related incidents are covered by a typical homeowners insurance policy. Homeowners insurance generally does not cover water damage caused by a flood or hurricane. This type of protection requires a separate flood insurance policy.
Flood Insurance: Filling the Gap
Flood insurance is a separate policy specifically designed to cover flood-related damage that is not typically included in a standard homeowners policy. Flood insurance can be obtained through either the government program known as the National Flood Insurance Program (NFIP), or from Private Insurance Carriers. At FloodPrice.com, we offer both, so let us do the shopping for you! We can help you compare prices and coverage to find the right policy for your home. Call us at 866-503-5663 or get a quote online.
NFIP vs. NCIP Private Policy: Which is better
An NFIP (National Flood Insurance Program) policy and an NCIP (National Catastrophe Insurance Program) policy offer different approaches to flood insurance coverage. The NFIP policy form is standardized and widely used, providing coverage under specific conditions defined by federal regulations, such as damage from inundation of normally dry land. However, it may have limitations, such as lower coverage limits and exclusions for certain areas like finished basements. On the other hand, an NCIP policy often provides broader and more flexible coverage options. It may include higher coverage limits, a more inclusive definition of what constitutes a flood, and coverage for additional risks like personal property in basements. The NCIP policy is designed to offer more comprehensive protection, making it a preferable choice for homeowners seeking more extensive coverage beyond what the NFIP offers. Understanding these differences can help homeowners choose the policy that best meets their needs.
What is Covered with Flood Insurance?
Flood insurance policies provide essential protection for homeowners by covering damage specifically caused by flooding. These policies can offer coverage for both the structure of your home and its contents. This includes damage to critical elements like walls, floors, and foundations.
In addition, flood policies usually cover the following, (depending on coverages selected) up to the specified coverage limits:
HVAC systems (heating or air conditioning)
Carpet and flooring
Cabinets
Electrical and plumbing
Appliances
Clothing
Policies may also include coverage for debris removal and some repairs to prevent further damage. However, it's important to note that NFIP policies often come with limitations, such as coverage exclusions for finished basements and limits for personal belongings. In contrast, a private flood policy typically offers broader coverage such as temporary living expense and personal property in a basement. With higher limits available, often at a lower price, a private flood policy is often a better option. Understanding these specifics can help homeowners ensure they have adequate flood protection.
Let's Compare | FloodPrice.com | NFIP |
Compliant with State Insurance Laws | Yes | No |
Max Residential Building Coverage Amount | $5,000,000 | $250,000 |
Max Content Coverage Amount | $500,000 | $100,00 |
Additional Coverage Options Available** | Additional Living Expenses, Debris, Removal & Carports | None |
Basement Coverage Available* | Paint, Flooring, Baseboards, Personal Property and more. | Drywall (No Tape or Mud), No personal property coverage |
Waiting Period for Policy Inception (Waiting periods waived for loan closing) | 15 Days | 30 Days |
*To see what is covered by NFIP, Click Here! See Page 9.
Do I Really Need Flood Insurance?
According to FEMA’s records from 2010 to 2018, the annual cost of flood damage nationwide was approximately 17 billion dollars, a staggering figure that put many home and business owners in a devastating financial position. Unfortunately, too many property owners think they have protection against the peril of flood under their homeowners insurance policies; typically, 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. Visit our Quote Page to get a free online quote or call us at 866-503-5663. One of our flood experts can help you evaluate your risk and find the best flood policy for your home. Don’t wait until a storm is on the horizon to obtain flood insurance, call us today
