When storms arrive, flash floods can pose serious risks to homeowners. Specifically, these events can cause water damage that can significantly affect your home’s structure and your personal property. Just one inch of floodwater is estimated to generate about $25,000 in damages. Since these losses can be significant and the cost of repairs can be high, all property owners should evaluate their insurance needs, and if necessary, update their coverage to apply to flood damage. If you’re concerned about this type of emergency, here’s what to know about homeowners insurance and floods.

What to Know About Homeowners Insurance and Flood Protection

Are Floods Covered in a Standard Homeowners Insurance Policy?

Standard homeowners policies cover damages related to many different perils—including fires, storms, plumbing leaks, theft, and vandalism. However, while these plans may cover storm and water damage, they don’t offer protection against flood-related incidents.

As a result, if you only have a basic homeowners policy, you may be responsible for the cost of repairing and replacing your property that was damaged in a flood.

What Is Flood Insurance?

While standard homeowner’s policies don’t address floods, you can buy additional coverage to address this risk. These plans are regulated by the government under the National Flood Insurance Program to ensure that homeowners have affordable access to protection. Typically, you can get flood coverage through the same provider as your homeowners insurance.

What Does Flood Insurance Cover?

In simple terms, this type of coverage protects against water damage related to flooding. Floods are defined as an excess of water on land that is usually dry, affecting either two or more acres of land or two or more properties.

Flood insurance policies are divided into two categories: building and contents.

Building coverage will pay for repair and replacement of electrical and plumbing systems, HVAC and refrigeration appliances, carpeting, foundations, staircases, installed cabinetry, window blinds, fuel tanks, and detached garages.

Contents coverage protects your personal belongings, appliances, and some home décor—such as curtains.

These policies may not cover emergency living expenses, additional structures, cars, and personal property that is stored in the basement. Some of these risks, however, may be included in your standard homeowner’s insurance plan.

While the value of flood insurance is easy to recognize, figuring out how to optimize your plan can get complicated. Fortunately, the professionals at Hamilton-Martin Insurance Agency in Louisville, KY, will help you navigate this critical area of coverage. Representing a wide range of insurance companies, these agents will introduce you to policy options that optimize your coverage while keeping your total homeowner’s insurance costs low. To learn more about all of their products and services, visit this agency online. For quotes, call (502) 957-6500.