What's the difference between water vs flood damage, and am I covered?

Amanda Daniels
Senior Client Advisor

"Water damage differs from flood damage in that water damage occurs before the water comes in contact with the ground. Water damage is usually caused by water that originates from plumbing, a flooded air-conditioning unit, an overflowing washing machine, or a hailstorm that breaks a window and allows water into your home. However, water damage that happens over a period of time, is usually excluded from the homeowner policy.

Homeowners Insurance does not cover "Flood".  A separate policy is needed to cover flood.  Flood insurance is technically defined as a temporary condition where two or more acres of normally dry land are inundated by water or mudflow. Flood Insurance will cover flood damage to the house‘s foundation, appliances, carpeting, paneling,  electrical and plumbing systems and if requested, will cover contents.  It does not cover property outside the building, like a detached garage, swimming pool, or trees in the yard. It also doesn‘t cover damage caused by moisture, mildew, or mold if the adjuster says that damage could have been prevented by the homeowner."

Flood Insurance

A standard Flood Insurance Policy is a single peril (flood) policy that pays for direct physical damage to your insured property up to the replacement cost, actual cash value of the damages or the policy limit, whichever is less.  You can purchase Building Coverage up to $250,000 max and personal property (contents) up to $100,000 through the National Flood Insurance Program (NFIP). In event more coverage is desired, there are Excess Flood Insurers who offer supplemental coverage.  There is a 30 day wait to purchase flood insurance unless it is required by a Mortgage/Lender.

A flood is an excess of water on land that is normally dry.  Flood is a temporary condition of partial or complete inundation of two or more acres of normally dry land or of two or more properties from:

• Overflow of inland or tidal waters.
• Unusual & rapid accumulation or runoff of surface waters or mudflow.
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated levels that result in a flood.

If water enters your home due to one of the above listed ways and causes damage, this is considered flood and your homeowner’s policy would NOT pay for damage incurred; instead, you will need a flood insurance policy.

Water Damage

Water damage insurance is a type of protection provided in most homeowner’s policies against “sudden and accidental” water damage. Water damage insurance does not cover damage resulting from the homeowners' negligence or failure to maintain the home in good repair or water damage that happens over a period of time. A few examples of water damage are:

• Burst pipes or frozen plumbing
• Accidental overflow of a malfunctioning appliance (like a dishwasher)
• Sudden pipe or roof leaks
• Water damage from an extinguisher or sprinkler during a house fire

If you have any other questions regarding flood or water damage insurance, please give us call stop by or send us an email. We are always here to help. 
910-762-8551
insurance@wellsins.com