Living on the Coast? The Hurricane Insurance Myth We Hear Most

One of the most common insurance myths we hear from coastal homeowners is: “My homeowners policy covers flooding.” In most cases, that is not accurate.

Why Homeowners Insurance Usually Does Not Cover Flooding

Standard homeowners policies generally exclude damage caused by rising water, which is considered flood. Some policies may allow flood coverage to be added by endorsement, but many carriers in our coastal area do not offer that option on a standard homeowners policy.

For most homeowners, the best way to protect against flood damage is to purchase a separate flood insurance policy.

How Homeowners Insurance Typically Defines Flood

From a homeowners insurance standpoint, flood usually means water that comes from outside the home and rises from the ground up. This is often referred to as “rising water.”

How Flood Insurance Typically Defines Flood

Flood insurance commonly defines a flood as a general and temporary condition where rising water inundates either:

• Two or more acres of normally dry land; or
• Two or more properties, including the insured property.

This can include overflow of inland or tidal waters, heavy rain accumulation, storm surge, or mudflow.

If a Hurricane Causes Flooding, Will My Homeowners Policy Pay?

Not necessarily. This is another common misconception. Even if a named storm brings heavy rain or storm surge, the claim is still adjusted based on the cause of loss. If the damage is caused by rising water, it is treated as flood damage.

Because flood is typically excluded from a homeowners policy, that damage would not be covered unless flood coverage was specifically added by endorsement or protected through a separate flood insurance policy.

Bottom Line for Coastal Homeowners

If you live near the coast, do not assume your homeowners policy covers all hurricane-related damage. Wind, rain, and flood can be treated differently by insurance companies, so it is important to review your policy and consider separate flood coverage before storm season.

Submitted by- Mary Beth Morris