Most homeowners insurance policies don't provide complete coverage in the case of a flood.
For homeowners, having the right combination of insurance coverage is the difference between a minor inconvenience and a massive financial burden when disaster strikes. From fires and floods to accidents and natural disasters, insurance coverage provides peace of mind that the investment you've made in your home is completely secured in any situation. While homeowners insurance provides a solid foundation of protection, many fail to realize that they are likely not completely covered in the case of a flood.
No, for the majority of policies. While there may be exceptions, the overwhelming majority of homeowners insurance policies to not include coverage for flooding. However, this isn't to say that you're completely out of luck when it comes to water damage. Many policies cover sudden or accidental water damage, providing relief in the case of a mistake or accident. This remains a far cry from comprehensive flood coverage, especially when the problem is larger than a busted pipe.
One of the first questions that comes to mind for any homeowner is one of cost. Insurance policies can be pricey, but it's impossible to nail down a definitive cost without getting a custom quote from someone on our team here at Lowry or through your insurance provider. Generally, flood insurance can vary depending on the amount of coverage that you need, the deductible that you choose to pay, and the area in which you live.
The first two points are relatively straight forward: more coverage increases the price while the willingness to pay more in your deductible lowers the price. However, the area in which you live may not be an element that many consider. Imagine, for instance, that the town that you live in is on a mountain. For those at the top of the mountain, the risk of a flood when the rainy weather comes knocking is low. For those towards the base of the mountain... well, things have the potential to get a bit wet. The same logic can be applied to areas across the country. In low-lying regions, flood insurance premiums are likely to be higher while they will be lower for areas with higher elevation. Not sure if your home is at risk? Explore FEMA's Flood Map Service Center to find the status of your address.
The need for flood insurance varies greatly depending on the individual situation for each policyholder. According to FEMA, just one inch of floodwater can cause up to $25,000 in damage. For property that is near a body of water, sits on flat land or land that has poor drainage, or in dry areas that aren't ecologically prepared to handle a rainy season, it's likely a wise decision to consider adding flood insurance to your policy.