Does Homeowners Insurance Always Cover Flood Damage?

A typical homeowners policy covers sudden and accidental water damage from internal sources, like a burst pipe, an overflowing bathtub, or a leaking water heater. It also usually covers damage from rain that enters through a damaged roof or wind-driven rain, as long as the roof was in good condition.

However, water that enters from outside because of rising water, such as a river overflowing, a storm surge, or heavy rain that floods the ground, is considered flooding and is generally not covered. The distinction matters because the cause determines whether you have coverage.

Water damage from a pipe that bursts inside your home is usually covered, as is damage from a malfunctioning appliance like a washing machine or dishwasher. If a tree falls on your roof during a storm and rain enters, that is typically covered as wind and hail damage.

But if the same tree falls and blocks a drainage ditch, causing water to back up and flood your basement, that might be excluded. The key is the source of the water. If the water came from outside the structure, it is likely flood damage.

Consider buying flood insurance if you live in a flood-prone area, even if you are not in a high-risk zone. Many homeowners skip it because they think they are safe, but floods can happen anywhere. The cost depends on your location and the coverage amount.

Also, take steps to reduce flood damage: install a sump pump, seal basement walls, and elevate electrical panels. Keep gutters and downspouts clear so water drains away from your foundation. If you have a basement, consider a backflow valve to prevent sewer backups.