A standard home insurance typically will not cover damages caused by flooding. To protect your home against flood-related damage, you can purchase a flood insurance endorsement from your existing insurer, if they offer it, or purchase a standalone flood insurance policy
What type of water damage does home insurance cover?
Home insurance offers some coverage for water damage, particularly when it’s sudden and accidental. For instance, water damage is often covered by a standard home insurance policy under the following circumstances:
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Burst pipes or frozen plumbing inside your home
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Overflowing or malfunctioning appliances or plumbing fixtures
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Sudden roof leaks caused by a storm
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Wind-driven rain or snow
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Water damage from an extinguisher or sprinkler used to put out a house fire
While home insurance may cover the water damage itself, it typically does not cover the root cause of the issue. For example, if plumbing issues cause water to leak into your basement, your policy might pay to fix or replace your damaged property, but it typically won’t pay to fix your plumbing.
When does home insurance not cover water damage?
Home insurance does not cover water damage caused by:
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Flooding
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Storm surges
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Sewer and sump pump failures and backups
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Water accumulating from under your property
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Water that is the result of ground movement, such as an earthquake
How to protect your home against flooding with flood insurance
Flood insurance covers damage to your home and property caused by flooding. You have two options when it comes to flood insurance:
The National Flood Insurance Program
You can buy flood insurance from the National Flood Insurance Program (NFIP), which the federal government funds. Policies underwritten by the NFIP cover losses resulting from a rise in water from external sources (excluding sewer backups, unless a larger flooding issue caused them).
You have the option to choose a coverage limit, but the maximum amount of coverage for a family of one to four persons is $250,000 for the structure of the home and $100,000 for the contents of the home. NFIP policies have a 30-day waiting period before coverage takes effect, though that waiting period can be waived under certain circumstances.
Private flood insurance
Some insurers offer private flood insurance outside of the NFIP. The benefit of private flood insurance is that you can choose higher coverage limits, and you may be able to avoid any waiting periods. Private insurers may sell flood coverage as a standalone policy or as an endorsement to your existing home insurance.
Who needs flood insurance?
If you live in a designated Special Flood Hazard Area and have a federally backed mortgage, you’ll likely need to carry flood insurance. You may also be required to carry flood insurance if the property in which you live received FEMA funding in the past. Further, some mortgage lenders themselves require flood insurance if your home is near a body of water.
Still, flood insurance can offer you an important financial safety net no matter where you live. According to FEMA, floods can happen almost anywhere, even if you don’t live by the water (though your risk increases if you live in a coastal region or near a body of water).
How to check if you're in a flood zone
If you live in a high-risk flood zone or Special Flood Hazard Area (SFHA) and you have a federally backed mortgage loan, you are legally required to carry flood insurance. To determine the risk of floods in your area and whether you live in an SFHA, you can check your home using the FEMA Flood Map Service Center Search by Address tool.
Other ways to protect against water damage
Flooding isn’t the only way that water can damage your home and property. While standard home insurance covers certain types of water damage caused by storms, burst pipes, and other covered perils, you may want to consider additional types of coverage:
Water backup coverage
A water backup endorsement enhances your existing home insurance policy by covering water backups and overflows. Coverage may include water damage resulting from clogged sewer lines, drain backups, and sump pump failures. While it will cover water damage, it won’t cover the cost of repairing or replacing the failed equipment that caused the water backup in the first place.
Ordinance or law
Ordinance or law coverage is a policy endorsement that won’t directly cover water damage, but can be useful when you have to file a claim. After a claim, this coverage helps cover the costs of rebuilding your home up to current building codes. A basic home insurance policy won’t cover those costs.
Tips for protecting your home from flood damage
You can take certain proactive measures to protect your home from flood damage, and in some cases, earn discounts on your home insurance policy:
Elevate your home
Elevating your home can protect the structure and your personal property from flooding. This process involves lifting the structure of your home and building a new foundation, or extending the original foundation. It may also include adding an elevated floor onto your home above the old slab.
Maintain water runoff and drainage
You need to perform regular home maintenance to maintain water drainage and ensure that water runs away from your home. Make sure to inspect and clean out your gutters, downspouts, and the splash pads around your home. Check that nearby ditches and storm drains are free of debris and operating as they should.
Improve lot grading
Determine how water accumulates and flows around your home to identify trouble areas. If stormwater doesn’t drain away from your home, you may want to alter your landscaping to improve runoff. This could include building up sunken areas, creating slopes, or digging small depressions that funnel water away from your home.
Install a rain barrel
You can install rain barrels that catch water as it comes out of downspouts. Stored water can be used for non-drinking reasons, such as watering your garden or washing your car. Rain barrels can even be buried underground, though you’ll need the right type of barrel to withstand the earth’s pressure.
Install flood prevention systems
Sump pumps draw in groundwater from around your house and direct it away from the structure through drainage pipes. Sump pumps with battery backups can continue to function even when power is lost, protecting against basement flooding.
Sewer backflow valves can be installed on pipes entering your home from outside, and only allow water to flow in one direction. This prevents floodwater and wastewater from backing up into your home through toilets, sinks, or other drains.
Flood vents are openings that allow water to flow through an enclosure, such as a crawl space or garage. Flood vents prevent water pressure buildup from damaging walls and foundations. Make sure they are kept free of debris to allow floodwater to flow freely.
Install a flood alert system
Flood sensors and other early warning devices detect signs of flooding so you can take preventative measures before extensive damage happens to your home or the property inside. Sensors get placed in areas at risk for flooding, such as basements or appliances, and alert you when they sense moisture. Some systems can even automatically shut off the water supply to your home.
