Home Insurance and Flood Insurance: Do You Know the Difference?


Your home is probably the largest financial asset you have. Making sure you have the right insurance coverage to protect your investment can really make a difference between a minor nuisance and a catastrophic financial loss. While a standard homeowner’s policy provides basic coverage and may reimburse from certain damages, it won’t pay for flood damage. So, between home insurance and flood insurance, do you know the difference?

Trying to understand the difference between standard homeowners and flood insurance can be confusing. We’re here to make it easier for you to distinguish the two so you can be sure you have the right coverage for your home.

Homeowners Insurance

With standard homeowners insurance, coverage for water-related incidents are usually optional. This can include coverage for sump pump overflow and water backup but excludes any damage that may be caused as the direct result of surface water or flood. In other words, homeowners insurance does not cover flood damage.

Flood Insurance

Flood insurance is a separate policy from your homeowners insurance. It covers any damages to your home due to a flood including plumbing and electrical systems, built-in appliances, etc. There is also the option to purchase additional coverage for the contents of your home such as furniture and valuables.

In South Florida, where many of us live in low-lying, flood prone areas it is especially important to make sure you are covered by flood insurance. Flood insurance is an invaluable investment if you live in a flood zone or any area that is prone to heavy rains, hurricanes, wildfires that can cause flash floods. As little as one inch of water in your home could potentially result in $27,000 worth of damages!

Don’t wait until the unthinkable happens. Remember flood insurance can take up to 30 days to become active. The best time to invest in a new flood insurance policy or upgrade your existing one in South Florida is well before hurricane season and the heavy rains begin. Let us help you get prepared; contact one of our licensed insurance professionals today.