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July 19, 2022

Homeowners Insurance Policies Flood Coverage

Floods present major risks to homeowners. They can damage or destroy your house and valuable possessions. Although you may already have homeowners insurance, it’s vital to know that those policies typically don’t cover flooding and a separate policy is usually needed.  

The experienced agents at ACF Insurance Services Inc. can work with you to secure an insurance portfolio that provides financial protection against floods and other risks. Contact us today for more information. people in boots in flooded house

Does My Homeowners Insurance Policy Cover Flood Damage? 
Homeowners insurance policies vary. They generally do not cover water damage from external sources such as floods. When reviewing your policy, it is essential to note if it is a named perils policy or an open perils policy.  

A named perils policy provides coverage for causes of loss that the insurance contract lists. Examples of typically named perils include theft, fire, lightning, vandalism, hail and windstorms. On the other hand, an open perils policy covers losses from all causes unless they are expressly excluded; this offers broader coverage than a named perils policy; however, floods are usually a named exclusion. 

A common type of homeowners insurance is known as an HO-3 policy. An HO-3 is a hybrid named perils and open perils policy. It covers the physical structure of your home on an open peril basis; its contents (e.g., your personal property such as furniture, electronics and clothing) are covered on a named peril basis.  

If you have an HO-3 policy, both your personal property and home could be vulnerable to out-of-pocket losses from flood damage. Floods are not listed in the named perils aspect of your policy (i.e., contents coverage), and are a listed exclusion for the open perils section (i.e., physical structure coverage). 

Can I Get Flood Insurance to Supplement My Homeowners Insurance? 
Flood insurance can fill in gaps left by standard homeowners policies, and coverage is typically available for your home and its contents. Depending on your location, you may be able to purchase a National Flood Insurance Program (NFIP) insurance plan, which is backed by the federal government. Private flood insurance policies may also be available.  

Contact Us for More Information 
Finding the right coverage for your home and possessions may seem complicated, but the knowledgeable team at ACF Insurance Services can help you secure the policies that best fit your needs. We can review the available options, discuss terms, limits and exclusions, and provide assistance while navigating the process. Contact us today to get started. 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 

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