Many homeowners believe that their standard property coverage provides benefits for all perils that could damage their home over the years. However, water damage from a flood is not typically covered, and flood insurance will need to be purchased separately. In some cases, this insurance is required by the lender. Otherwise, it may be an option that you can add to your coverage upon request.
A flood from severe weather can cause significant damage to your home. Everything from your flooring and drywall to your foundation, electrical system and more can be damaged because of rising flood waters. Keep in mind that flood insurance is broken down into two primary types of coverage, and you may have to purchase these separately. This includes separate coverage for the property and for the personal property that may have been damaged in a flood. The building coverage pays for damages to the actual structure and its built-in components. The personal property coverage pays for flood-related damage related to furnishings, appliances and other items.
A lender typically will require that you purchase flood coverage if the property is located in a high-risk zone. Remember that floods can also occur in low-risk flood zones, so it may also be beneficial to purchase it even if it is not required by your lender.
Before you purchase this coverage, you should be aware that not all damages related to a flood are covered by this type of insurance. For example, damage to landscaping, outdoor improvements, loss of income, mold growth related to the flood and more are not included by the coverage. Flooding is common in basements because of their subterranean location. However, this type of coverage also has limited benefits related to floods in basements. In addition, there are limits regarding how frequently you can file claims.
Remember that you will be required to pay your deductible each time that you file a flood coverage claim. Because you never know when the next flood will occur in your area, it is wise to always have the deductible amount available in a savings account to pay as needed.