Does Homeowners Insurance Cover Flood Damage?

Although your regular homeowner's insurance policy covers a variety of types of damage, including water damage from within your home, obtaining coverage for flood damage is a bit more complicated. You will generally need to purchase a separate flood insurance policy to adequately cover your home from flood damage.

At AdvantaClean, we are always available to provide solutions for preventing flood damage from occurring in the first place and assist you if you do experience flood damage. Our extensive knowledge of what needs to be done immediately following flood damage to restore your home means that we are here to help even when your insurance company is not.   

What does homeowners insurance typically cover?

Homeowners' insurance policies typically cover your home and possessions from a variety of types of losses. However, it does have limitations, and you should not rely on homeowners insurance alone to protect your home. Most policies do not protect against every possible type of damage, which means that it is important to be aware of when you may need to purchase additional coverage.  

Is flood insurance included in homeowners Insurance?

Homeowners' insurance generally covers damage that results from typical weather, such as hail, lightning, and wind damage. However, most homeowners' policies do not cover natural disasters, such as earthquakes, hurricanes, and floods. You can find more information from your insurance company about specific exclusions for natural disasters and additional steps your insurance company recommends taking to protect your home, property, and possessions from floods and other natural disasters.

In most circumstances, purchasing a separate flood insurance policy in addition to your regular homeowner's insurance is the best way to make sure that your home and belongings will be covered in case of flood damage. Flood insurance through the National Flood Insurance Program can be purchased directly through a FEMA agent or insurer, and there are also private options available that often offer a higher level of coverage. Having this type of policy is particularly important if you live in an area that is prone to flood damage, such as next to a river or in a state where hurricanes are common. It is even required for both homeowners and business owners in certain high-risk areas.   

Is mold removal covered by homeowners insurance?

Mold damage and removal coverage can vary significantly depending on the reason for the mold and your specific homeowner's insurance policy. Minor mold and water damage that are specifically related to your home are often covered, such as mold that is a result of a leaking pipe, overflowed toilet, or other broken appliance. However, mold that results from heavy rain, a hurricane, or other types of flooding usually will not be covered by your regular homeowner's insurance. As a general rule of thumb, damage that comes from the water inside your home will usually be covered, while water from outdoors will not. Like water damage, mold removal that is linked to flooding is best covered with a separate flood insurance policy.     

Why is flooding not covered by homeowners insurance?

Flooding and other types of natural disasters often result in too much widespread damage to be covered by your regular homeowner's insurance premiums. Homeowners' insurance policies are intended to provide sporadic coverage for a relatively small number of people at a time. Flood damage is very expensive to clean up and typically affects most homes and businesses in a specific area, which presents a higher level of need within a short amount of time than most homeowners insurance policies are equipped to handle. 

Also, not every homeowner lives in an area that is likely to experience flood damage. Many homeowners insurance companies offer coverage to nationwide customers, and their funds are generally used for types of damage that could be experienced by any customer in any location. Requiring all homeowners to purchase coverage for flooding and other natural disasters that are unlikely to apply to them would increase premiums and decrease the ability of insurance companies to efficiently handle claims. Instead, customers who live in areas that are prone to hurricanes, earthquakes, or other natural disasters are encouraged or required to purchase an additional policy that meets the specific needs of that area. 

What is the difference between flood insurance and homeowners insurance?

Flood insurance and homeowners insurance are similar policies that handle different types of claims. Homeowners insurance is a broader type of policy that is designed to cover damages that all homeowners are at risk of, while flood insurance is a specialized type of add-on policy that is recommended for homeowners that are most likely to need it. It is intended to be purchased in addition to your regular homeowner's insurance, not replace. Federal or private flood insurance policies cover the majority of water and flood-related mold damage to your home and belongings, although there are some exclusions. In most cases, your homeowner's insurance policy will not cover these claims.    

What does a typical water damage restoration process look like?

Water damage restoration starts with assessing the amount and type of damage that has occurred. This information will be used when filing your claim with your flood insurance provider to determine the coverage that you will receive. The assessment also identifies the specific work that will need to be done to restore your home. Water will be removed as quickly as possible to prevent mold and further water damage. The professional cleanup process includes removing and replacing damaged carpeting, floorboards, walls, built-in shelving, and other fixtures.

Although determining the specific type of insurance coverage you need is not always easy, the good news is that most water and mold damage caused by flooding can be covered with the right type of insurance policy. Your homeowner's insurance can be supplemented with flood insurance or other types of specialized natural disaster insurance to meet the needs of your specific location. Contact AdvantaClean today to speak with one of our experts about the next steps to take to restore your home if you do experience flood damage!