Types of Flood Damage Covered By Home Insurance
Flooding is one of the most common and costly natural disasters in the United States, but most homeowners are surprised to learn that standard home insurance policies do not cover flood damage. To ensure proper protection, it's crucial to understand what type of flood damage is and isn’t included in your insurance coverage — and how separate flood insurance fills the gap.
Flooding Typically Excluded From Standard Policies
Most standard homeowners' insurance policies in Texas and across the country exclude flood damage caused by natural disasters. This includes flash floods, rising water from heavy rain, overflowing rivers, coastal storm surge, and groundwater seepage. If floodwater enters your home from outside and causes damage to the structure or contents, your home insurance policy likely will not pay for the repairs.
When Flood Insurance Becomes Essential
To cover damage caused by external water events, homeowners must purchase a separate flood insurance policy, either through the National Flood Insurance Program (NFIP) or a private insurer. NFIP coverage is available to Texas residents living in participating communities. This type of insurance covers direct physical losses caused by flooding and includes two primary categories: structure and contents.
Structural Damage Covered by Flood Insurance
Flood insurance typically covers damage to the foundation, walls, electrical systems, HVAC equipment, appliances, and plumbing systems. If floodwaters weaken or destroy structural components of the home, a flood insurance policy can provide funding to repair or replace those elements. Detached garages and certain other features may also be covered, depending on the policy limits.
Personal Property and Belongings
Most flood insurance policies also cover contents, which means they will pay homes for damage to things like furniture, gadgets, clothes, and kitchenware. But these things must be in the parts of the house that are covered by the insurance. For instance, things kept in basements may not be covered at all or may only be covered if they are specifically listed in the policy.
What Isn't Covered
Some things may not be covered by flood insurance. Coverage usually doesn't cover temporary housing, cars, landscaping, or damage from sewer backups unless it was caused directly by flooding and is included in an endorsement.
Conclusion
In Texas, standard home insurance isn't adequate to protect against flood damage. If you live in a place that floods a lot, you might want to get separate flood insurance to safeguard your home and your belongings. In the face of increased flood hazards, the only approach to protect your financial future is to be proactive.