Home » The Difference between Flood Insurance and Home Insurance?
January 6, 2012

The Difference between Flood Insurance and Home Insurance?

As a home owner, you know that you need certain types of insurance not only to make your lender happy, but also to provide you with some financial protection against the losses that follow an insurable incident. But is home insurance, a product that protects you financially from losses that your dwelling structure and contents can experience after certain incidents, enough?

There is one mistake that many homeowners make when purchasing their home insurance policies. They assume that any claim affecting their home will be covered by the policy. But in the case of a flood, this is assumption is false because home insurance policies do not cover the financial damage brought by floods.

A flood is generally classified as the rising water level of a body of water. So if a nearby stream, lake, pond or other water source rises after rain, melting snow or hurricane and moves in to destroy your home, the claim would not be covered unless you actually carried flood insurance.

In some areas, flood insurance is required by your mortgage lender because the area is considered at high risk for a flood. But in other areas, flood insurance is a line that you can choose to carry or not.

Home insurance policies are designed to cover damages to your property that are caused by insurable incidents not excluded by the policy. This could include events like fire, vandalism, hurricanes, tornadoes, etc. Incidents covered will depend on the class of your policy. If your home floods as a result of your roof being badly damaged during a storm and rainwater collecting in your home, this is the type of event that would more than likely be covered by your home insurance policy.

Remember, flood insurance is specifically designed to cover flood activity. Home insurance is a broader based policy that covers more individual insurable events, but does not cover floods.

If you would like to find out how much Flood Insurance would cost you, why not let one of our friendly agents give you a fast, free quote.  Just give us a call at (800) 807-6871 or complete an online quote today?

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