How Is Water Damage Different Than Flood Damage?

Think you’re covered by your homeowners insurance policy for flooding? Think again. Most policies do not cover any type of flood damage. No matter if your flooding was the result of bodies of water overflowing, violent storms, pool leaks, or ground oversaturation, it will probably not be covered by a standard homeowners insurance policy. It is vital to invest in a separate flood insurance policy. 

Even neglected home maintenance and repairs for an area that needed to be addressed may invalidate coverage by your homeowners policy, forcing you to cough up the repair costs yourself. 

Forbes explains that water damage that is “sudden and accidental” is covered by homeowners insurance policies:

• Burst pipes, including pipes that were frozen
• Accidental leaks from appliances
• Damage due to efforts to put out a house fire
• Damage from a roof leak
• Damage from seasonal storms

What if you live in a low-risk area? Can you get away with skipping flood insurance and rely on the built-in water damage coverage of your homeowners policy? The answer is a resounding “no!” FEMA notes that 25 percent of all flood insurance claims come from homes situated outside of high-risk areas. 

Plus, the damage can be far more expensive than you ever realized. The good news is that flood insurance can be very affordable, especially if you live in a moderate-to-low-risk area.

Water damage due to a burst pipe or leaky faucet has many long-term consequences for your home, including mold and structural issues. However, unless it’s from an overflowing toilet or septic system, the water itself likely poses little to no health risk immediately. 

The EPA warns that you should try to limit your contact with floodwaters as much as possible. Unlike home plumbing mishaps and leaks, that floodwater rushing into your home may be contaminated with countless hazardous materials and chemicals, including raw sewage. According to the EPA, many pathogens can be transmitted into your home as floodwaters from sewage and from waste through farm animal and wild animal populations. This includes many biological agents, including various parasites, bacteria, and viruses.

Symptoms of exposure to these materials can range from relatively minor headache and flu-like symptoms to serious intestinal problems. Children, in particular, can be at risk for the health issues caused by floodwaters. Playing on the floor, for example, puts them in close contact with areas of your home that came in contact with the contaminated floodwaters. Small children may also put soiled items from the floor into their mouths, further increasing the risk for ingesting pathogens, even after the floodwaters have been removed.

Unlike flood damage, which is often caused by an unavoidable act of nature such as a storm surge, torrential rain, or water runoff, water damage from inside your home generally originates from some kind of mechanical or structural failure. 

No matter the cause of the water damage, something in your home failed and can be fixed. The repair itself may be costly, but you will be able to sleep well knowing that you immediately solved the issue. Again, homeowners insurance will likely cover most forms of water damage, assuming it falls under the qualifying conditions.

Unlike water damage in your home due to mechanical failure, you probably have little control over the risk of future flood damage. Particularly for coastal homes and those in low-lying areas, flood damage may be a constant threat you’ll have to face every year. In addition to the looming property risks, this ever-present danger can take its toll on you emotionally. Depending on the amount of damage and personal items lost, rebuilding after a flood can be a difficult experience to overcome.

Forbes explains that the recurring flood risk also means that you’ll probably be paying a higher premium on your homeowners and flood insurance. This is particularly true if you live in a high-risk flood zone, have higher coverage amounts, and own an older home. It’s also worth noting that homes with a basement pay slightly higher rates on their flood insurance.

The difference between flood damage and water damage extends well past the source of the water. There is a huge difference in how each can impact your health, finances, and continued peace of mind. 

Short of raising the elevation of your home, there’s little you can do to reduce your flood risk. However, it’s important to recognize that water damage in your home is largely under your control. If you keep up with regular maintenance and frequently check for signs of excess water, you can dramatically cut down on your risks and your expenses if a leak, malfunction, or failure does occur. 

Sources

• https://www.forbes.com/advisor/homeowners-insurance/water-damage/ 
• https://www.fema.gov/sites/default/files/2020-05/F061_Homeowners_Does_not_cover_flooding.pdf
• https://www.epa.gov/natural-disasters/flooding
• https://www.epa.gov/sites/production/files/2014-08/documents/flood-related_cleaning_report.pdf 
• https://www.forbes.com/advisor/homeowners-insurance/flood-insurance-cost/