Know the Difference Between Flood Insurance and Water Damage Coverage

Understanding the difference between flood insurance and water damage coverage is essential for North Carolina homeowners. With the state’s mix of coastal regions, rivers and unpredictable weather, knowing what your policy covers can help you avoid costly surprises, enabling you to adequately cover your property.

What Is Flood Insurance?

Flood insurance is a type of policy designed to cover losses caused by flooding, such as rising water from heavy rain, hurricanes or overflowing rivers. Standard homeowners insurance policies typically do not include flood coverage. In North Carolina, where flooding can happen unexpectedly, especially in low-lying or coastal areas, having a dedicated flood insurance policy may be crucial for full coverage.

What Does Standard Water Damage Coverage Include?

Water damage coverage is usually part of your standard homeowners insurance policy. It may cover sudden and accidental water damage, like a burst pipe, a malfunctioning washing machine or a leaking roof after a storm. However, it does not cover damage caused by flooding from outside your home. It’s important to review your policy to understand exactly what types of water damage are included and any exclusions that may apply.

Key Differences Between Flood and Water Damage Coverage

If you’re still a little confused, no worries. Here are a few key differences between the two coverage options:

• Source of water. Flood insurance covers water that comes from outside your home and rises to enter your property. Standard water damage coverage generally applies to water issues that originate inside your home.
• Policy type. Flood insurance is a separate policy, often offered through the National Flood Insurance Program (NFIP) or private insurers. Water damage coverage is included in most homeowners insurance policies.
• Common exclusions. Flooding from natural disasters is not covered by standard homeowners insurance. Likewise, flood insurance does not cover water damage from internal sources like plumbing failures.

Why North Carolina Homeowners Should Pay Attention

Given North Carolina’s history of hurricanes and flash floods, understanding your coverage options is vital. Many residents may not realize that their homeowners insurance does not help with flood damage. Our team can help you assess your risk and determine whether adding flood insurance is right for your situation.

If you have questions about flood insurance, water damage coverage, or want to review your current policy, our team at Darden Insurance Agency is here to help. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.