One of the best ways to learn is to follow by example. The photo below is a home affected by a disastrous flood. As you can see, a majority of the home is destroyed, and will require major repair in order for the homeowners to live here again. Now, imagine if this was your home, and you found out none of this damage was going to be covered by insurance. First-time homeowners usually assume homeowners insurance covers everything. Here are some common questions people would ask when found in this situation:
"I have homeowners insurance. The flood happened in my home, so why isn't it covered?"
- A typical homeowners insurance policy does not include flood coverage. In the aftermath of Hurricane Katrina in 2005, this fact gained publicity when thousands of homeowners submitted claims to their insurance providers and learned the damage would not be covered because it had been caused by a flood. The debate back then was, the damage was caused by wind and not water.
- An easy rule to remember is, flood is damage from the floor, up and wind is damage from the roof, down. It is important to speak to your agent about your coverage to make sure you have everything you could possibly need.
"Is water damage covered at all?";
- In terms of insurance, the definition of flood is rising water. Any damage caused by rising water will require its own flood insurance. Damage caused by broken pipes or overflow would more than likely be covered by homeowners insurance, but not because of a natural disaster.
As a homeowner, it is important to know what is covered under your policy and what isn't. Standard homeowners and renters insurance does not cover flood damage. Flood coverage, however, is available in the form of a separate policy from Edison Insurance Company.
Edison Insurance Company's mission is to provide quality coverage at competitive rates while providing exceptional service. For more information on Flood Insurance, or to get a quote, please call (866) 568-8922.
