Homeowners vs Flood Insurance

Most homeowners insurance policies do not cover flood damage – federal flood insurance does. Flood insurance also covers damage from mud flow, dirt and debris resulting from moving water.  A homeowners insurance policy provides coverage for many types of water damage including damage from broken pipes, heavy rains and storms due to exterior damage to the home, but it usually does not provide coverage for damage from flood.  Flood insurance is available in all 50 states, as long as your community participates in the National Flood Insurance Program and your home is not in a Coastal Barrier Resource System Area. Don’t wait for an imminent flood to obtain flood insurance. Most flood policies have a 30-day waiting period before coverage begins.   There is no waiting period if you are in the flood zone and the policy is being mandated by your mortgage company.  You don’t need to live by water to be at risk. Anywhere it rains, it can flood. Over 20% of all flood claims occur in low- to moderate-risk areas.  A home in a high-risk flood area has a 26% chance of being damaged by flood during the course of a 30-year mortgage. That same home only has a 9% chance of a fire.  Some insurance companies offer a coverage called water backup of sewer and drain or sump pump over flow endorsement.  This coverage applies if the water backs up from the sewer due to a sump failure or deluge that the city drainage cannot handle.  A typical limit is $5000 with a $1000 deductible.