I’m sure you’ve heard of Hurricane Patricia, a category 5 hurricane that caused mass floods in Mexico last weekend. This topic came up as I was talking to a friend, and she said “I hope all those people have homeowners insurance."
I forget sometimes, as a licensed insurance professional that deals with insurance on a daily basis, that not everyone understands what exactly is covered on their homeowners insurance vs. what is excluded. The fact is, Flood is excluded from ALL homeowners’ policies, or at least that is the case here in Texas. When I told my friend that it was excluded, she was surprised and said that her agent told her that water damage was covered under her policy.
Duhn duhn duhhnnn… So let me explain the difference between “water damage” and “flood”. Flood is categorized as rising water or rain water. Water damage is a coverage offered under some homeowners’ policies (depending on the type of policy that you have), as long as it’s sudden and accidental. Check with your agent to make sure you have this coverage. This type of coverage is offered up to a certain limit, or a certain percentage of your coverage A.
So let’s put this into perspective… An example of water damage would be if your dishwasher overflows or your washer overflows and causes damage to your dwelling (the structure) or your personal property. Always keep in mind what your deductible is, to make sure it would make sense to claim.
Flood insurance can be purchased separately from any licensed agent; as this is a single peril policy and it covers damage caused directly by flood. Typically, if you are not in a flood zone, the premium is pretty reasonable. Hopefully this clears up the difference, but you can always talk to your agent to get more clarification.