Does Flood Insurance Cover Natural Disasters? What’s Excluded and What’s Included

What’s Included in Flood Insurance?

Flood insurance is designed to protect homeowners from damage caused by floods, which are defined as the overflow of water onto normally dry land. Whether caused by heavy rainfall, snowmelt, hurricanes, or other water-related events, flood insurance helps cover the financial burden of repairing your home and replacing damaged belongings.

Here’s what is typically covered by flood insurance:

1. Structural Damage to Your Home
   Flood insurance covers damage to the structure of your home caused by rising waters, including:
   
   
   • Foundation damage
   • Walls and floors
   • Electrical and plumbing systems
   • Appliances that are permanently attached (like water heaters and furnaces)
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2. Personal Property Damage
   Flood insurance also helps replace or repair personal belongings that are damaged by floodwaters, such as:
   
   
   • Furniture
   • Electronics
   • Clothing
   • Books and important documents
3. Basements and Crawl Spaces
   Depending on your policy, flood insurance may cover some basement damage. However, there are limitations. For instance, while damage to foundation walls, floors, and equipment may be covered, things like carpeting or personal items may not be.
   
   
4. Additional Living Expenses
   If your home is rendered uninhabitable due to flood damage, flood insurance can help cover the costs of temporary housing or living expenses while your home is being repaired.
   
   

What’s Excluded from Flood Insurance?

While flood insurance offers a solid layer of protection against flood damage, there are certain exclusions. It’s important to understand these limitations so you’re not caught off guard when disaster strikes. Here’s what flood insurance generally does not cover:

1. Flooding from Sewers or Drains
   Flood insurance typically doesn’t cover damage caused by sewer backups, drainage issues, or rising waters from storm drains. This kind of water damage usually falls under a separate water damage or sewer backup policy.
   
   
2. Earthquakes and Landslides
   While earthquakes, landslides, and mudslides are natural disasters, they are generally not covered by flood insurance. Earthquake insurance is a separate type of coverage that would need to be added to your policy.
   
   
3. Damaged Landscaping
   Flood insurance doesn’t cover damage to landscaping, such as trees, shrubs, or grass. If your garden is flooded, you’d need to rely on another form of insurance, like homeowners or renters insurance.
   
   
4. Valuable Items
   Flood insurance may not cover valuable items, such as jewelry, artwork, and collectibles, unless they’re specifically listed and covered under additional endorsements.
   
   
5. Property in the Open
   Items stored outside, like decks, fences, and outdoor sheds, are generally not covered under flood insurance. If you have items stored in the open that are at risk, it’s worth considering additional coverage.
   
   

Does Flood Insurance Cover All Types of Natural Disasters?

Flood insurance is specifically for damage caused by flooding, but it doesn’t necessarily cover all other natural disasters. Here’s a quick comparison:

• Flooding (covered): Flood insurance covers water damage from rising rivers, heavy rain, coastal storms, hurricanes, or snowmelt.
• Hurricanes (partially covered): Flooding from hurricanes is covered, but damage caused by high winds or storm surges is typically excluded. For that, you’d need windstorm or hurricane insurance.
• Earthquakes (not covered): As mentioned, damage from earthquakes is excluded, and you’d need earthquake insurance.
• Tornadoes (not covered): Flood insurance does not cover damage from tornadoes, which are typically covered under a separate homeowners policy or storm insurance.
• Wildfires (not covered): Flood insurance does not protect against fire damage. Homeowners or fire insurance would cover that kind of destruction.

Why Do You Need Flood Insurance?

Floods are the most common natural disaster in the United States and Canada, and they can happen at any time. Whether it’s due to heavy rainfall, rapid snowmelt, or tropical storms, floods can cause significant and expensive damage. Flood insurance ensures that you won’t be financially burdened by the aftermath of a flood.

If you live in an area prone to floods or are near rivers, lakes, or coastal regions, flood insurance is essential. Even if your area isn’t in a high-risk zone, floods can still occur unexpectedly.

When it comes to flood insurance, it’s crucial to understand what’s covered and what’s not. While flood insurance will protect your home and belongings from damage caused by flooding, it’s important to have separate coverage for other natural disasters, such as earthquakes or tornadoes. Be sure to review your policy to ensure it meets your needs.

If you’re dealing with the aftermath of a flood, 247-Restoration.ca is here to help you restore your home to its pre-damage condition. We’ll guide you through the process and help you navigate the insurance claims process, so you can get back to normal as quickly as possible.