But I have Insurance!

5/25/2021 (Permalink)

My damaged property should be covered by my property insurance carrier. Not so fast! What’s the difference between water damage vs. flood damage? Unfortunately, many people believe that water damage and flood damage are automatically covered through their property insurance. As a property owner, it is very important to understand the difference between water damage and flood damage and how each scenario may be or may be not covered by your insurance carrier. WATER DAMAGE is usually caused by water originating from plumbing, such as a pipe backup, clogged toilet, dishwasher, washing machine, frozen pipe, leaking roof, sump pump malfunction and/or any other internal plumbing issue. A FLOOD DAMAGE is usually caused by water originating from a natural occurrence such as a hurricane or heavy rain event. It is so common for property owners to believe homeowner’s insurance will cover for flood damage. Remember, homeowner’s insurance does not cover for flood damage. Most likely your policy will usually cover for water damage only, it will not pay for damages related to a flood event. Again, it is imperative to remember that flood damage and water damage are two distinct insurance coverage policies and possibly two different insurance companies. It is always best to discuss your coverage and coverage needs with an insurance professional and understand what is and what is not covered by your insurance carrier in case of property damage.