Why is flood insurance essential?
There are so many ways water can cause expensive damage to your home. According to the Insurance Information Institute (III), the average flood claim in 2018 was $42,580.
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.