Does My Homeowners Policy Cover Flood?

In a word, no! Damage caused by flood is specifically excluded under just about all homeowners policies. A separate flood policy is needed to cover flood damage.

Consider these facts: 90% of all Presidentially declared disasters are flood related. 30% of all floods occur in low to moderate flood risk areas. In the fall of ’99, over 62,000 North Carolinians experienced flood damage from hurricane Floyd, the vast majority of whom were residing in low to moderate risk areas. The average flood policy has an annual premium of $320.00. Do you need Flood insurance? You decide!

Many people think of flood as only caused by a river overflowing or a dam breaking. This is not true. Flood is often defined as ". . an overflow of inland or tidal waters, the unusual and rapid accumulation or runoff of surface waters from any source including rain, and mudslides which are proximately caused by flood."

A "rapid accumulation of . . surface water" can occur during any heavy rain. It is not necessary that a river crest above its banks to meet the definition of flood. Often "flash floods" only last a few minutes but if your home is affected, the damage can be tremendous and is not covered by homeowners. The definition of flood in flood policies is intended to pick up where homeowners policies leave off so in many cases, water damage from heavy rains is covered even if it is not a "flood" in the traditional sense.

We invite you to contact us about flood insurance today.