6 Things Your Flood Insurance Will Not Cover

8/28/2018 (Permalink)

Floods are stressful disasters to deal with. Knowing what your policy does and does not cover will help you be prepared and know what to expect.

Flood Insurance Does Not Cover Everything

Flood insurance is extremely important when trying to make sure you are prepared for a worst-case scenario during a large storm or hurricane. While this type of coverage is worth looking into, it is important to know that there are types of damage that are actually not covered by your policy so you are not blindsided if you ever need to make a claim. Knowing the key restrictions and limitations of your flood insurance policy will leave you better prepared.

1. Water Damage from Internal Malfunctions

A flood that is caused by internal malfunctions in your home such as a pipe burst or overflowing toilets is not covered by a flood policy. Damage will only be covered if the source of water that caused the flood is external, such as an overflowing lake or heavy rain during a storm. Make sure that you are covered for floods from internal malfunctions by having a homeowner’s insurance policy as well. Talk to an agent or adjuster from your insurance policy for more information and questions about the kind of water damage your policy will cover.

2. Landscaping and Swimming Pools

Although your swimming pool may be located outside of your actual home, if your home is flooded by your pool it will not be covered by your flood insurance policy. Also, damage to flower beds, gardens, trees, or any other landscaping on your property will not be covered.

3. Damage from Small Floods

Unless the water that causes damage to your property covers at least two acres or has also affected another property, the water will not be considered a flood by your insurance company. Also, if your home sustains damage from mold or mildew that could have been prevented, you will not be covered for the damage under your policy.

4. Living Expenses and Business Interruption

Any living expenses that you incur from the flood, such as renting a hotel room, will not be covered by your flood insurance policy. Also, if you run a home business and your operations are interrupted, financial losses will not be covered.

5. Money and Important Papers

Your policy won't pay for the value of any currency, precious metals, stock certificates, and other valuable papers that get destroyed in a flood.

6. Improvements and Most Contents in Below-Ground Areas

You will not be covered under your flood insurance policy for any improvements made to your basement, such as finished walls or floors. Also, personal property such as clothing, computers and electronic equipment, kitchen and office supplies, furniture, and other items located in your basement or any other areas below the lowest elevated floor of your home will not be covered.