The Difference Between Your Homeowners Insurance With and Without Flood Insurance

With all the heavy rains that have happened in the last two days I was curious what kind of damage is covered by insurance. Many people who buy a home where no lake, stream or river is located nearby often opt out of flood insurance seeing as the likelihood of a flood happening as virtually impossible.  I spoke with my insurance agent Scott Doyle of First Insurance of Maine today and he gave me a little insight of homeowners insurance and what it covers.

He has received an influx of calls dealing with residents that have, unfortunately, endured damage to their basements and living quarters due to water seeping into their homes. He informed me of what your insurance covers and why.

A standard homeowners policy will cover water damage due to a leaky roof or if the sump pump in your basement fails. HOWEVER, if the damage done is caused by water flowing into your basement from holes in the walls or seeping up through the floor then that is NOT covered by the standard policy. Those types of damage require FLOOD insurance.

That’s right.

Even if you don’t live in a flood zone, the water coming into your house by these methods is caused by flooding. What happens with the heavy rain is that it finds and makes paths or tunnels through the snow due to gravity. Water will make its own trail to get to where its going. The trails lead toward the walls of your home and, ultimately, to the basement of your house. The water will eventually find the weakest point of your foundation and break through. The tunnels can be on the sides of your house and even underneath. The water that enters this way is considered to be caused by a “flood”.

And if you don’t have flood insurance on your home, the damage won’t be covered. That means if your furnace is damaged: it’s not covered. If your washer and dryer are damaged: it’s not covered. If your items are stored in cardboard boxes, whatever you have will be destroyed. If they are stored in plastic totes they have a better chance of surviving but, ultimately, they won’t be covered either.

Do yourself a favor when purchasing a home: see how much extra a flood insurance policy is. You never know what might happen. A small monthly payment could save you thousands of dollars.