Does homeowners insurance cover flood damage?
Because flood damage is so infrequent, the majority of homeowners insurance policies do not cover it. Federal law requires people living in certain areas of the country that are subject to catastrophic floods to hold some type of flood insurance. These required flood insurance areas are labeled as federal flooding areas. It is a good idea to look into flood insurance in order to protect your external property (the house itself) and internal property (your possessions), both of which could be significantly damaged, destroyed, or lost during a flood. Flood insurance is relatively inexpensive for the possible payout that it could provide.
No. If you are in a flood prone area it may be wise to purchase flood insurance. In some parts of the country, homes can be damaged or destroyed by mudslides. This risk is also covered under flood policies. Contact your insurance company representative to get this insurance. For information about claims related to flood insurance, call the Federal Insurance Administration at 1.800.427.4661.
