Flood Defined & Why Your Home Policy Does not Cover Flood
When purchasing a flood insurance policy, it is important to understand how your flood insurance company defines a flood. Most companies use FEMA’s definition. FEMA defines a flood as:
“A general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area or of 2 or more properties (at least 1 of which is the policyholder’s property) from:
overflow of inland or tidal waters;
Unusual and rapid accumulation or runoff of surface waters from any source or º Mudflow”
When talking to people about their homeowner’s insurance the word “flood” gets used sometimes to describe different “water events” that may happen such as:
A broken pipe
A dishwasher overflows
A roof that leaks water into the house
Sump pump failure
These types of “water events” may or may not be covered by your homeowner’s policy, but they would not be covered with a flood insurance policy. Each policy is different so it’s important to know if these non-flood water events are covered by your homeowner’s insurance policy.
Why doesn’t homeowners’ insurance cover flood events?
Homeowners policies exclude coverage due to flooding because of two main reasons:
Water damage caused by flooding is not covered by homeowners or renter’s policies because it is considered to be a gradual event rather than sudden or accidental. Homeowners insurance covers sudden and accidental events. As a rule of thumb, if the water first touches the ground before entering your home, it is considered flood damage.
Insurance companies can keep people’s insurance premium lower by excluding certain perils (events) such as flooding. Flooding is one of those exclusions. If flooding was no longer excluded, your homeowner’s insurance, your premiums would increase. Instead, the homeowner has the option to purchase a separate flood insurance policy if they so desire.
