What are water damage coverage and flood insurance?

Alabama homeowners often assume that their homeowners’ insurance policy will cover all forms of water damage, but that’s not true. If you own your home and there’s a chance it will flood, it’s critical that you understand the differences between water damage coverage and flood insurance.

Understanding Water Damage Coverage

Water damage coverage is meant for accidental water damage. This includes things like a burst pipe or appliance malfunction, as well as water damage caused by trying to extinguish a fire.

A standard homeowners’ insurance policy will likely cover various forms of accidental water damage, but limitations may exist. The coverage may not extend to gradual leaks, sewer backups, or mold. However, some policies will have special riders that offer additional coverage.

Understanding Flood Insurance

Flood insurance is designed to cover natural flooding events, such as rivers overflowing, hurricanes, storm surges, and similar events. This type of insurance must be purchased separately from standard homeowners’ insurance. It’s valuable if your home is in a flood zone or if you’re particularly concerned about hurricane season.

The key to determining if your policy will cover an event is to look at the source of the water damage. If the damage stems from something within the home, water damage coverage will likely apply. If the damage comes from a natural disaster, such as a hurricane, flood insurance will likely cover the damage.

Ensuring you have homeowners’ insurance that provides you with the coverage you need on your home is critical. Contact our experts with Surety Ins Inc. to discuss your needs so we can help you get the policy that provides you with the peace of mind you need.