Is Flood Included in Homeowners Coverage?

According to the Insurance Information Institute, less than 20 percent of U.S. homeowners have flood insurance, despite floods being the most costly natural hazard in the country. Many are either unaware that their insurance policies lack flood damage coverage or underestimate the likelihood of experiencing a flood-related incident. 

Under most standard homeowners insurance policies, damage from natural events—like lightning, windstorms, hail, sleet, and snow—may be covered, but there’s a good chance that extreme weather damage or flooding isn’t. Flood insurance is designed to cover damage caused by actual floods, meaning external sources of water–not leaks and broken pipes within the home. As your clients face the possibility of devastating and unprecedented weather events, you can’t leave anything up to chance. 

It’s essential to ensure you recommend the appropriate coverage to protect their homes and belongings against the unexpected. Here’s more you can share about flood insurance, how it works, what it covers, and what types are available.