Is that Water Damage Covered by Insurance?

Population density continues to increase along America’s Atlantic and Gulf coasts. Much of this area is less than 10 feet above sea level, but a storm surge can easily reach 15 feet, or even 20 feet in coincidence with a normal high tide (known as a storm tide). When a heavy storm brings water into your home, you can be looking at thousands of dollars in costs to replace damaged furniture or lost items and to repair floors, walls, electrical and other parts of your house damaged by water. You may look to your homeowners insurance for help, but will your insurance company look the other way? Here’s what you need to know about water damage and homeowners policies.

Private Insurance

Whether your mortgage company made you or you were just smart enough to purchase it on your own, if you own a home, you probably have a homeowners insurance policy covering the structure and its contents. If your home suffered water damage in a storm, the big question for you is whether the water entered your home by being blown in from the wind, or whether it was caused by a storm surge. This question can be crucial to your claim; water blown in from wind is likely covered under your policy, while damage from a storm surge most likely is not. A storm surge is an abnormal rise in water caused by a storm, as defined by the National Hurricane Center. It is also the primary cause of property damage and death in a hurricane.

National Flood Insurance

A storm surge is one thing, but what about an all-out flood? Homeowners policies don’t provide flood coverage as a matter of course, and it’s usually too expensive to purchase private flood insurance separately. That’s where the government steps in. The National Flood Insurance Program (NFIP) makes affordable flood policies available to homeowners in flood zones. NFIP flood insurance covers storm surge and other flooding and is available to renters and commercial property owners as well as residential homeowners. National flood insurance can cover the building, its contents, or both, with some specific exclusions outlined in the law.

The NFIP definition of flood includes a storm surge (tidal or inland waters overflow). Property vulnerable to a coastal storm surge is classified by FEMA as being located in a high-risk Special Hazard Flood Area; premiums are higher than for those on low-to-moderate flood risk areas eligible for NFIP flood insurance.

Obtaining all the benefits you are entitled to under your insurance policy, and getting them in a timely manner, can be a frustrating and challenging process. If you believe your claim is being unreasonably delayed, denied or underpaid, you may need to seek legal help from an attorney who can advocate, problem-solve and if necessary litigate on your behalf.