What Is the Difference Between Flood Insurance and Homeowners?

Homeowners insurance typically pays for water damage that happens suddenly and accidentally from inside your home. Examples include a broken water pipe, a leaking dishwasher, or an overflowing toilet. The policy usually covers the cost to dry out the area, repair the structure, and replace damaged belongings.

However, homeowners insurance has limits and exclusions. It usually does not cover damage from groundwater seeping through the foundation, or from water that backs up through sewers unless you added extra coverage. It also excludes flooding from outside sources, which is why a separate policy is often necessary.

Policies vary, and your insurer decides what is covered.

• Burst pipes and plumbing leaks
• Appliance overflows, like a washing machine
• Roof leaks from a storm (if wind caused the opening)
• Water damage from firefighting efforts
• Sewer backup only if you added that endorsement
• Sudden accidental discharge from a water heater

The main difference is where the water comes from. Homeowners insurance handles water that starts inside your home, like a pipe that bursts. Flood insurance handles water that starts outside and enters your home, like rain that soaks the ground and seeps in.

Another difference is how you buy each policy. Homeowners insurance is usually required by your mortgage lender and is sold by private insurers. Flood insurance is optional in most areas, though some lenders require it if you live in a high-risk flood zone. You can buy flood insurance through the government program or a private insurer.

• Homeowners covers internal water, flood covers external water
• Flood insurance is often a separate policy with its own premium
• Homeowners policies usually exclude flood damage
• Flood insurance may have a waiting period before it takes effect
• Both policies have deductibles, but they work differently
• Flood insurance is required by some lenders in high-risk zones

If water damage happens, act quickly to dry the area and prevent mold. Turn off the water source if it is safe, and move valuable items to a dry place. Take photos of the damage before any cleanup, as those can help with your insurance claim.

For internal water damage, you may need to call a plumber to fix the source. For help with cleanup, local water damage pros can dry out your home and repair affected materials. For flood damage, you may need to contact your flood insurer and follow their instructions for filing a claim.

• Turn off the main water valve if a pipe bursts
• Remove standing water with a wet vacuum or mop
• Use fans and dehumidifiers to dry the area
• Throw away porous items like carpets and mattresses that got soaked
• Call a mold professional if you see mold growing
• Keep receipts for any emergency repairs you pay for