Understanding Flood Insurance: Protect Your Home and Personal Property
Flood insurance is an imperative policy that provides coverage for damages caused by flooding. Unlike typical homeowners policies, flood insurance specifically addresses flood damage, protecting not only the structural integrity of your property but also your personal belongings such as furniture and appliances. Renters, too, can purchase flood policies to safeguard their personal property.
In high-risk flood zones, mortgage companies often mandate having this insurance. Knowing the distinction between what a homeowners policy and a flood insurance policy cover is crucial: if water contacts the ground before entering the home (e.g., rising water from flood), and causes damage, it would require a flood insurance claim. Conversely, if water enters your home without making contact with the ground first (e.g., a burst pipe or damaged roof), the homeowners policy would typically cover it.
Here’s a quick breakdown to identify the relevant policy for different water-related damages:
- Rising water that touches the ground: Covered by flood insurance.
- Water damage without ground contact (e.g., leaks): Covered by homeowners insurance.
Protecting your property with the right insurance not only offers peace of mind but is a responsible step towards securing your financial well-being in the event of a disaster.
Related Terms: homeowners insurance, rental insurance, property insurance, natural disaster coverage, flood zones.
