Flood Coverage - What is it and do you need it?
Who can tell us how much rain our area has received so far this summer?! It seems as though it has rained every day!
Are you aware that the standard homeowner's insurance policy does not cover flood waters?
The standard definition of flood water is surface water, waves, including tidal waves and tsunami, tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind...
Flood coverage must be selected and purchased through it's own individual policy. Flood coverage cannot (at this time) be endorsed as an added coverage on your homeowner's insurance policy. Let's run through a couple of scenarios or situations. It's easy to think that you will never need flood coverage and you're probably correct, however, there could be certain situations you may actually find your home in where a flood policy would been needed.
Situation 1:There was a severe storm last night and now I have a water spot on my ceiling. Is this considered flood damage? No, this is not considered flood waters. This damage seems to be caused due to a wind related incident and is likely covered under my homeowner's insurance policy.
Situation 2: My home is in a subdivision and is not listed in a flood zone but when we receive heavy rains, the ditches typically back up and I see the water inching closer and closer to my home. The water finally reaches my home and it's seeping in from the foundation. I can see the walls and flooring becoming wet. Is this covered? I do not have a flood policy. No, this is not covered. This is considered flood damage.
Situation 3: My home is on a hill and there is no risk of the ditches backing up but what if one of my french drains was to become obstructed? This might cause rain water (surface water) to enter my home through a threshold. I don't have flood coverage on my homeowner's insurance policy and I don't carry a flood insurance policy, will my damage be covered? No, it will not be. This is considered flood water damage.