Does Homeowners Insurance Cover Hurricane Damage?

Table of Content

• What are examples of commonly covered homeowners insurance situations?
• Does Home Insurance Cover Flood Damage?
• Which Water Damage Restoration Companies are Covered by Insurance?
• Does homeowners insurance cover mold?
• What are the five basic areas of coverage on a homeowners insurance policy?
• Standard homeowners insurance doesn’t typically cover flood damage.

Since some causes of water damage may not be covered by homeowners insurance, it’s also important to take steps to prevent or mitigate water damage. Homeowners insurance covers a broad range of damages, including fire, theft, vandalism, wind, hail, lightning, and rain damages. Additional flood coverage can help protect against flooding from heavy rainfall, hurricanes, and storms. In most cases, your dwelling coverage will pay to repair damages caused by an overflow of water from appliances, but only when the overflow occurs accidentally and suddenly. For instance, if a sock somehow blocks your washing machine’s water outflow hose and floods your laundry room, your dwelling coverage should cover the ensuing damage. If the water damages other items in the laundry room, like a dryer or cabinets, your personal property coverage should cover the losses.

The insurance company offers an insurance policy with the expectation that the homeowner is being proactive in maintaining their property. Unfortunately, snow that builds up on the ground and causes damage is not covered by homeowners insurance, because it’s technically flood damage. A flood insurance policy would cover both damages from excessive rain and snow building up on the ground.

What are examples of commonly covered homeowners insurance situations?

Call your insurance agent, the same person who sells your home or auto insurance. For example, damage caused by a sewer backup is covered if the backup is a direct result of flooding. If the sewer backup is not caused directly by flooding, the damage is not covered. Take a detailed inventory of all damages to your home and belongings. Take photos or videos — closeup and wide-angle — of all affected structures and personal property.

A homeowner’s car and motorcycle are also not included in coverage, but it’s possible that their auto insurance policy may cover those items. The cost of your flood insurance will depend on several factors. The most impactful aspect of your premium is your home’s flood zone.

Does Home Insurance Cover Flood Damage?

Hundreds of thousands of Florida property owners face requirements to buy flood insurance under a precedent-setting bill approved Wednesday by the state Legislature. Most of what we call natural disasters are indeed natural, though human contributions may increase their likelihood or intensity. If a hurricane slams into land where no one lives, it isn't a disaster; it's weather. While a 2% flood chance may seem tiny, it’s actually very serious, given the massive financial damage floods can cause—on the order of tens of billions of dollars nationwide over the past 20 years. Standard policies provide six different types of coverage; we’ll get into more detail in the following sections.

Some policies even have two deductibles, ones for your dwelling coverage and one for your personal property coverage. The deductible you will pay will depend on what type of damage occurred. Typically, you’ll need to purchase a separate flood insurance policy for coverage. You may be able to buy coverage through the National Flood Insurance Program , either directly or through an insurance carrier that sells the coverage, or from a private insurance company. You may also be able to add a flood endorsement to your home insurance policy.

Which Water Damage Restoration Companies are Covered by Insurance?

Keep in mind, too, that some insurance companies may refuse to renew your policy if you file too many claims. So for minor water damage, you may be better off paying for repairs yourself — especially if you’ve already filed other claims within the past five to seven years. Finally, NFIP policies do not include coverage for a homeowner’s additional living expenses while their home is repaired. It's important for homeowners to know what is—and what is not—covered by their flood insurance policy so they can be prepared if disaster strikes.

Most flood policies come with a 30-day waiting period, which means your coverage won’t be effective until 30 days after you make the first payment. There are a few exceptions to this, but keep it in mind when you’re shopping. Additionally, don’t wait until a storm is coming to shop for coverage; many companies put moratoriums on their policies if the potential for damage is imminent. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories.

Does homeowners insurance cover mold?

If you live in an apartment, your landlord insures the building, but you still need to carry insurance for your possessions and additional living expenses. If you live in a state where hurricanes are common, it’s important to make sure you have enough personal property coverage. The requirement applies only to property owners who have coverage through Citizens Property Insurance, which has become the state’s largest property insurer.

Flood insurance will cover certain objects in your basement, such as most personal belongings and appliances. However, it typically will not cover the structure, such as finished ceilings or floors. When you take out a flood policy, you will need to purchase both dwelling and contents coverage to get the maximum coverage for your basement. And unfortunately, too many property owners think they have protection against the peril of flood under their homeowner’s insurance policies; they do not. The biggest concern with private insurers is that unlike NFIP, the insurer is not required to continue selling a homeowner a policy. FEMA frequently redraws risk maps as the landscape and climates change, so if the home falls into a higher-risk area, the private insurer can cancel the homeowner’s policy.

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Many insurers provide personal property coverage of 50% to 70% of your home’s insured value, according to the Insurance Information Institute (Triple-I). Flood insurance coverage also has other restrictions that are important to be aware of. A homeowners insurance policy typically covers natural disasters caused by explosion, fire, lightning, hail, windstorm, hurricanes, tornadoes, extreme cold, volcanoes and theft. Homeowners insurance usually does not cover earthquakes, floods, tsunamis or nuclear disasters. Water damage from burst pipes may be covered by your homeowners insurance, but a flooded bathroom after a thunderstorm would not be.

Homeowner’s insurance covers some types of water damage, but not others. Since water damage is so common and costly, it’s important to understand when homeowner’s insurance covers water damage to ensure you have the protection you need. Sometimes coverage is comprehensive, like full coverage policies for cars, while other times you have to opt for additional coverage. Likewise, your personal property coverage will usually cover your furniture.

Depending on your individual policy, it can also exclude pets, vehicles, and airplanes. Once the situation is under control, contact your home insurance company to report the incident. Deductibles apply for each homeowners insurance claim, so confirm the amount you’re responsible for paying toward the water damage. Standard homeowner’s insurance policies may provide limited coverage for certain high-value possessions, such as antiques, artwork, and computers. Homeowners may be able to buy an endorsement or rider to add more personal property coverage for valuables. In homeowner’s insurance, water damage coverage may include leaks, such as plumbing leaks and roof leaks, as long as the leak occurred accidentally and suddenly.

Some carriers offer their own privately underwritten flood insurance, or even a flood insurance endorsement for your home policy, and many others can facilitate the purchase of an NFIP policy. If you are looking to buy a home soon, shop around with multiple insurance companies to compare pricing and coverage. Finally, it could be beneficial to do more than a skim-read of your policy. Take the time to understand what it includes , how to file a claim and any additional coverage you might need to purchase.

What are the five basic areas of coverage on a homeowners insurance policy?

Typically, any storm damage due to rain, wind, or hail is covered under a standard homeowner's policy. But damage due to floods, earthquakes, and volcanoes are generally not covered. Many things that aren't covered under your standard policy typically result from neglect and a failure to properly maintain the property. Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. If you’re still on the fence about flood insurance, an independent insurance agent can go over the pros and cons with you. Flood insurance usually costs only a few hundred dollars per year, making it the right decision more often than not.

Coverage may be obtained with a separate flood insurance policy or, occasionally, by an endorsement to your home policy. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Handerhan of the insurance reform group said he hopes homeowners will buy flood coverage even if they live outside of flood zones and feel they are not at risk. Luckily, there's flood insurance, which is especially designed to cover damage from floods.