Does my home insurance policy cover flooding?

By Spencer Kilpatrick

Water Damage – What is actually covered?

What’s the background of homeowner’s insurance?

Homeowner’s insurance is sometimes referred to as a fire policy.  Modern homeowner’s policies have evolved from our grandparent’s “fire insurance” and today’s policies cover a wide range of perils. But does a homeowner’s insurance cover water damage?

Standard homeowner’s insurance offers little coverage when it comes to water damage, especially water due to heavy rains. When it comes to water damage, a flood policy is typically purchased to cover any damage from overflowing waterways, rain runoff, and of course, heavy rainstorms leading to floods.

There is a misconception among policyholders who believe flooding and standing water in the home, especially the basement. When surveyed, 33% of Americans believed that flooding was covered by a standard homeowner’s policy, and only 20% of at-risk properties in America are insured against flood damage. For example, during Hurricane Harvey, only $12 billion of the $40 billion of damage was covered by flood insurance. While we don’t have hurricanes in Kentucky, flood insurance may still be right for your home.

So, what type of water damage IS covered by my home insurance?

One of the main principles of homeowner’s insurance is the coverage for sudden and unpreventable events. When events are considered to be avoidable through routine maintenance, insurance claims are likely to be denied. Ensuring all appliances are in working order and free of leaks will help mitigate water damage caused by interior appliances, pipes, etc. 

When pipes or appliances suddenly fail, subsequent water damage should be covered. For example, if your hot water heater bursts and floods your basement, you would be eligible to submit a claim. If a washer hose bursts, you would be eligible to submit a claim. If your basement floods from rainwater, you would normally NOT be eligible for a claim. 

What is the deal with flood Insurance?

Most standard insurance companies do not offer flood insurance. A local broker can connect you to a policy issued by the National Flood Insurance Program or another private flood insurance program.   These policies have strict limits of coverage and there are specific conditions to be met before a flood claim will be paid.  If you live in a designated flood zone, you are required to buy flood insurance when you signed your mortgage. This protects the customer and the mortgage company in the event of a catastrophic event.

Where can I buy flood insurance?

At Castle insurance, we are connected to some of the few private flood policies available. Pricing and coverage options will vary.

Here’s a little video with more info.

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