Water, water everywhere and not where it should be! Will your insurance policy cover it? That depends on the type of insurance you chose to purchase and how the water entered your home.
There are two insurance policies that deal with water damage to your home. A flood insurance policy and a homeowners insurance policy.
Losses not covered by one of these may be covered by the other. Knowing the types of loses your home could be exposed to will help you to decide which type or if both of these policies are needed.
A standard flood insurance policy, which is written by the National Flood Insurance Program, provides coverage up to the policy limit for damage caused by a flood. According to the dictionary, a flood is defined as a rising and overflowing of a body of water onto normally dry land. The word rising for insurance purposes is what distinguishes flood damage from water damage. Generally, water that has been on the ground before it enters your home , is considered to be flood damage.
Examples- a nearby river overflows its banks
Flood damage can only be covered with a Flood Insurance Policy.
Check with your local officials to see if you are living in a flood plane.
A homeowners insurance policy does not cover flood damage. But, it does cover many other types of water damage. Just the opposite definition of flood damage, water damage is considered to occur when water damages your home before it comes in contact with the ground.
Examples- a hailstorm smashes a window, allowing rain to enter.
Even if your flood or water damage is not covered by your homeowners policy, losses from theft, fire, or explosion resulting from water damage is covered. So, water damage from flooding would only be covered by flood insurance. But, damage or theft from looters following the flood would be covered by your homeowners policy. Flood and homeowners insurance do not duplicate coverage for water damage, but complement each other.
So, this is a brief explanation of the two types of policies covering water damage to your home. It is up to you to talk with your insurance agent and decide what type of insurance coverage is best suited for your needs.