Why is flood insurance essential?
There are so many ways water can cause expensive damage to your home. According to FEMA, every inch of floodwater can cause up to $25,000 in damage.
It’s important to know that flood damage and water damage covered by a homeowners policy are different. Homeowners policy coverage is limited to water damage caused by unexpected home-related situations, like a burst pipe or a leaking dishwasher. Homeowners policies don’t cover damage caused by flooding. A flood insurance policy is the only way to be covered for flood damage to your home.
Related: The Homeowner's Checklist for Water and Flood Damage Cleanup
We support the NFIP’s position that every homeowner and renter should have a flood policy, especially if you live in a high-risk flood area. You might even be required to have one if you’ve gotten a mortgage through a federally regulated or insured lender.