Homeowners Insurance vs. Flood Insurance: What’s the Difference?

Homeowners Insurance vs. Flood Insurance: What's the Difference?
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Introduction

In an age of climate change, it’s becoming more and more important to protect your home from the effects of flooding. Fortunately, there are policies that can help do just that. But what is flood insurance? What is it not? Here’s a quick guide to understanding the difference between homeowners and flood insurance:

Homeowners insurance covers damage to your home from disasters like fires, tornadoes, blizzards and more.

It also covers you if someone is injured on your property. And it covers the contents of your home–the furniture and other belongings inside it–in case they’re stolen or damaged by fire or other calamities.

The National Flood Insurance Program (NFIP) provides flood insurance coverage for people who live in areas at high risk for flooding. The program was established in 1968 after Hurricane Betsy struck New Orleans and caused $1 billion worth of damage along the Gulf Coast; since then it has provided protection for more than 5 million homes nationwide through policies purchased by homeowners themselves or through their lenders when applying for mortgages that require flood insurance coverage as part of the mortgage loan package

Flood insurance covers damage to your home from flooding.

Flooding is the overflow of water that causes damage and can result in significant losses. Floods can occur anywhere there is standing or flowing water, including rivers, streams, lakes and oceans.

Flooding can be caused by many different events including strong winds from hurricanes or tornadoes; heavy rainfall over a short period of time; snowmelt in springtime; dam failures due to earthquakes or sabotage; ice jams (blocks of ice) on rivers during winter months that cause rapid rises in water levels when they melt during warmer weather months; tsunamis resulting from seismic activity such as earthquakes near coastal areas–these are called “tidal waves” because they travel through the ocean rather than traveling overland like normal tidal waves do when beachfront homes get flooded due to storms hitting land first then moving back towards shoreline cities after making landfall at high speeds due to wind speeds exceeding 50 miles per hour).

If you live in an area that is at risk for flooding, you need to have flood insurance.

If the water rises and your home is damaged by flooding, the damage will not be covered under a standard homeowners policy. You will be responsible for paying out of pocket for repairs or rebuilding your home yourself.

If you don’t have flood insurance and your home is damaged by flooding, then that’s what happens: The damage isn’t covered under any type of policy because it doesn’t fall into any one category–it’s not fire-related; it’s not theft-related; etcetera.

Most homeowners and renters policies don’t cover damage caused by floods.

If you live in a high-risk area, you need to have flood insurance. Flood insurance is different than homeowners insurance and should be purchased separately–even if you already have a policy with another company.

Flood insurance is different than homeowners insurance and if you live in a high-risk area, you need it.

You may be thinking, “I already have homeowners insurance; why do I need flood insurance?” The truth is that homeowners insurance does not cover flood damage. That’s because it’s designed to protect you from other kinds of risks, like theft or fire. Flooding can happen anywhere–even if your home isn’t located in a high-risk area–so it’s important to understand the difference between these two types of coverage and how they work together.

Flood Insurance vs Homeowners Insurance

Conclusion

Flood insurance is different than homeowners insurance and if you live in a high-risk area, you need it.

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