What’s the Difference Between Water Damage and Flood Damage?

It was raining since last three days and I could see water everywhere. At first, it was quite interesting as I live in Rajasthan, India, commonly known the deserted place and rain is like heaven here. I was enjoying the weather without knowing it can be troublesome if water level surges that fast. Surfing on Google with hot coffee in my balcony deep in my thought Wow, How exciting the weather is! May it remain the same!
Phone ringed. It was my close friend, Felishka, asked “Have you heard the rumor it can be flood if the rain has not stopped or the proper management not done to let the water flow out of the city. She asked do you have flood insurance policy. I said “yes, I have. Papa (dad) is aware of it when last time pipe is broken in our house, most of the properties got damaged. Thank god! We get insurance coverage under homeowner’s insurance policy.” Felishka said, “No, Flood and water damage is a different thing.” I wondered, really! I do not know about it.


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Lucky we, it was a rumor and rain gradually stopped. But the question is still wondering in my mind so I went the house of my uncle, an insurance agent. I started asking a question and I am sharing you how the discussion proceeded.

Question 1:

I: Do water damage and flood damage different?
Uncle:  Yes, in legal terms they differ. It matters a lot what is the source of water and from where the water came from.

Question 2:

I: What is the difference in water damage and flood damage?
Uncle: according to the national flood insurance program the legal definition of term flood damage is:
“A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mud-flow.”
“Water damage’s origin is a broken dishwasher or water heater hose/leakage, a washing machines leakage or overflow, broken cistern and blocked toilets. In other terms, damages occur due to water interruption and attack the system or material.”

Question 3:

I: How many types of available insurance coverage to cover the damage caused by water?
Uncle: There are two types of insurance coverage:
1] Homeowner’s insurance: according to the insurance information institute, improves public understanding of insurance, states “standard homeowners and renters insurance provides coverage for burst pipes, wind driven rain and damage resulting from ice dams on your roof. Some policies cover sewer and drain backups, but many do not.”
2] Flood insurance: water that comes from the bottom up is covered under a flood policy. In other terms surging the level and overflowing over the dry area is flood damage.

Question 4:

I: Who provides the coverage in case of homeowner’s insurance policy and flood insurance policy?
Uncle: Flood insurance comes under national flood insurance program from the federal emergency management agency.
Homeowner’s insurance: Homeowner’s policy coverage is provided by many insurance companies and they guarantee to give coverage for predefined perils.

Question 5:

I:  What homeowner’s insurance policy does not cover?
Uncle:

• Damages from maintenance issues
• Doesn’t repair sources which cause the damages
• Outside sewer water comes into your home

Question 6:

I: Is it possible to get coverage under both the policy?
Uncle: No, both works simultaneously but doesn’t overlap. If in a certain condition you are eligible to both the coverage, you can avail any one of them.

Question 7:

I: Is flood insurance only for the people living in pro-flood areas?
Uncle: No, if your community comes under the 100-year floodplain. 100-year floodplain is the 1% annual chance of floodplain. FEMA uses 100-year floodplain to determine coverage under flood insurance policy.

Question 8:

I: What if insurance company denies for water damage compensation?
Uncle: Insurance Company has the group of lawyers for legal actions. So it is better to hire an advocate and tell your problem to him. An advocate will file a claim and you will get compensation if you are eligible.

Question 9:

I: If my house comes under hill station and no chances of flood occurrence, do I need flood insurance as security?
Uncle: No, you don’t need to bother for this. Your homeowner’s insurance will work in this case.

Question 10:

I:  What are the costs for homeowner’s insurance policy and flood insurance policy?
Uncle: NFIP offers per annum $100, which is very low. The home insurance varies from company to company and country to country. The average homeowner’s insurance costs per annum are $1500.
The discussion is ended here. I got answers to my all question and I was quite impassioned also to share the information to the maximum I can.
In conclusion, if you are living in the flood-prone area or low-risk area, don’t forget to get insurance under the flood insurance policy. The national flood insurance program costs $100 per annum and it is quite an affordable. Homeowner’s insurance is necessary no matter where are you living. It covers the home damages due to fire, water, explosion, wind, hail, freezing or theft. So go to insurance firm today only and get the insurance for future safety.