Author Laura Ray is not only a mortgage loan originator but also has 25 years in the water damage restoration industry having been involved in over $80 million in claims.

When it comes to safeguarding your home, knowing the distinctions between flood insurance and home insurance can make all the differe

nce. While both are essential for protecting your property and your mortgage will require it, they serve distinct purposes and cover different types of damage. In this guide, we'll unravel the complexities of these insurance policies, shedding light on what they encompass and what you need to consider when securing your home against potential threats. So, let's dive in and explore the world of flood and home insurance to ensure your peace of mind and financial security.

What Defines Flood?

What defines a flood that is covered in flood insurance? Flood insurance covers a specific kind of damage caused by rising water. While things like toilets overflowing or rain from strong winds can flood homes, flood insurance usually doesn't cover those situations. Instead, flood insurance helps when water rises because of things like heavy rain, rivers overflowing, big storms, or snow melting. It's important to know that regular home insurance usually doesn't help with this kind of damage, so if you live in a place prone to flooding or near water, getting flood insurance is really important.

Home Insurance

Home insurance covers flooding and water damage that comes from things like toilet overflows, hurricane and wind damage, fire, theft, and other perils. However, wind driven rain is typically not covered unless it is from structural damage from a covered loss. Seepage is also a typical exclusion in home insurance policies. It is very important to understand your policy and terms of coverage.

Insurance Tips

A few tips when getting insurance:

Home Insurance

1. Don’t exclude water damage. Water damage claims can start at $10,000 or more. It is worth the coverage.
2. Allow a mold limit of at least $25,000.00. The costs of a mold remediation is average at that amount.
3. If you can opt out of Preferred Vendor, do so. This can cause a hold up in claims especially the types that are declared Federal Disasters.

Flood Insurance

1. Pay the cost for additional contents. Your home insurance will not pay for contents damaged by rising water.
2. Know some of the main exclusions to flood insurance and prepare for it.
3. Upper cabinets are not covered. You will pay out of pocket to match those.
4. Air handlers are not covered unless they were in the rising water.
5. Mold is not covered, so be sure to have the wet materials removed immediately.
6. Condominium Associations are notorious for having long, drawn out claims processes. It is a good idea to have funds set aside to make your home livable as you wait.

Understanding the nuances of flood insurance and home insurance is vital for homeowners looking to safeguard their investments and peace of mind. It will also prevent your mortgage from requiring “Forced Insurance”, which can be costly.

While home insurance provides coverage for various perils, flood insurance is specifically designed to protect against rising water damage. As we've seen, both policies have their unique benefits and limitations. To ensure comprehensive protection, it's crucial to carefully review and tailor your insurance coverage to your specific needs. Whether you're in a flood-prone area or not, being informed about your insurance options empowers you to make the right decisions to secure your home. By staying well-informed and prepared, you can navigate unexpected challenges with confidence, knowing that your home and belongings are adequately safeguarded.