Why Does My Insurance Policy Exclude Certain Flood Damage?

Flood damage usually means water that comes from outside your home and covers normally dry land. This can include heavy rain, overflowing rivers, or storm surge. Your standard homeowners policy often treats this as a separate risk, and many policies exclude it entirely.

In contrast, water damage from a sudden internal event, such as a broken pipe or an overflowing bathtub, is often covered under your standard policy. The key difference is the source of the water. If water enters from the ground up, it is likely considered a flood. If it comes from inside your plumbing, it is usually not.

• Rising water from a river or creek
• Heavy rain that pools around your foundation
• Storm surge from a hurricane
• Water that seeps through the ground into a crawl space or lower level
• Mudflow, which is a type of flood
• Overflow from a nearby lake or reservoir

Read your policy documents carefully, focusing on the definitions section. Look for the word 'flood' and see what is listed as excluded. Your policy may also have a 'special exclusions' section that spells out what is not covered. If you are unsure, ask your insurance agent to explain the terms.

Keep a copy of your policy in a safe place, and note the date you received it. If you have questions about a specific loss, your insurer decides what is covered. Policies vary, and your insurer decides what is covered.

You can take steps to reduce flood risk around your home. Elevate electrical panels and appliances, clear gutters and drains, and consider flood-resistant materials in lower floors or crawl spaces. If you live in a hot, dry climate, be aware that flash floods can happen after sudden downpours.

These measures can help reduce damage, but they are not a sure thing. Your local floodplain manager or building department can provide guidance on specific steps for your property. Check your policy to see if it offers any incentives for flood mitigation.