It's the rainy season. Do you have the right insurance?

It's the rainy season. Do you have the right insurance?

January 10, 2023

With the wet winter weather upon us, flooding may be of concern for some homeowners. Flooding can happen unexpectedly and cause considerable damage to homes and personal property. With all this rain, you might wonder if your home insurance covers water damage.  

Not all types of water damage are covered under a home insurance policy. Coverage depends on the source and the situation. Let’s first look at the source because understanding where the water damage began can help determine if you have coverage. For instance, let’s say you have a busted pipe in your wall. In this case, water damage occurred from a source inside your home so it will likely be covered by your home insurance. But what if water seeps inside your home because your backyard is flooded with rain? If the water comes from outside your home, it generally is not covered by your standard policy. Insurance distinguishes between water damage and flood damage, and standard homeowner's insurance policies do not typically cover flood damage. Understanding the two can be confusing, which is why it’s important to read your insurance policy closely or seek help from your agent. The primary difference is flood is an excess of water on land that is normally dry. This could be overflow of inland or tidal waters, rapid accumulation or runoff of surface waters, or mudflow.  

If you live in an area that is prone to flooding, it is a good idea to consider purchasing flood insurance. Flood insurance can help protect you financially in the event of a flood. It is worth noting that flood insurance is often required if you live in a designated high-risk flood area and have a mortgage from a federally regulated or insured lender. Even if you are not required to have flood insurance, it may still be worthwhile to get a policy if you live in an area that is prone to flooding. 

Contact your agent to discuss flood insurance options and coverage details. There are coverage options available through the National Flood Insurance Program and private carriers. 

This blog post is not offered, and should not be relied on, as insurance advice. You should consult an insurance agent for advice in specific situations.