Will Flood Insurance Cover Storm Surge Damage?

Homeowner's insurance doesn't usually cover flood damage. If your home is at risk, you must get flood insurance directly from a private flood insurance provider or the federal government through the National Flood Insurance Program. The plan covers damage to your house and belongings but not to your land, which could sustain significant damage in extreme floods.

Tip

The coverage of a flood insurance policy extends to storm surges. For flood insurance purposes, a storm surge is regarded as identical to common flooding.

Understand Storm Surges

The National Oceanic and Atmospheric Administration describe a storm surge as "the rise in sea level exclusively induced by a storm." The most common time for storm surges to occur is during a hurricane. Flood insurance policies cover storm surge damage. However, it is not covered by a typical homeowner's plan, which does cover wind damage. If you live near the coast, it's strongly advised that you think about getting flood insurance. If you have a mortgage, note that your lender might even demand you do so. That is accurate if you have an FHA mortgage since the government requires flood insurance for properties backed by the FHA in flood plains.

What Flood Insurance Excludes

Storm surge damage is covered by flood insurance, but there are numerous additional situations when it won't. These include flooding caused by problems inside the house rather than outside, like broken pipes. Your homeowner's insurance policy should cover this type of internal damage. Since basements are, by definition, located in low-lying locations, your flood insurance won't cover the majority of any flooding caused by a storm surge or any other form of flood occurrence. The basement's structural damage, such as drywall and electrical work, may be covered by the flood insurance policy, but not the personal items kept below, with the exception of a washing and dryer and food freezers.

Additionally, insurers consider the legal definition of flooding, which typically refers to flooding that affects many properties or covers at least two acres. The ensuing mildew or mold damage is not covered by flood insurance. In contrast to homeowner's insurance, flood insurance does not pay for living expenses if a home is too damaged to live in, nor does it protect your garaged vehicles from flooding damage. As long as you have collision and comprehensive insurance on the vehicles, you might wish to review your auto insurance coverage if such an incident occurs.