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My home just flooded!!!.…What do you mean floods are not covered on my home insurance policy?

Sound familiar? This question gets asked hundreds of times from unsuspecting homeowners when floods hit there area. Most homeowners are mislead to believe that home insurance covers everything or as I have heard numerous times in the past from new clients… “when I bought this house my loan officer took care of the insurance and it’s all handled by the mortgage company and they told me I was fully covered. “ Just like I’m sure you wouldn’t go to a dentist for heart surgery, you shouldn’t go to a loan officer or mortgage company for home insurance.

In spite of popular opinion, ignorance is not bliss, especially when it comes to homeowners insurance. The worst possible time you should find out about your coverage is when you have a claim. Floods have never been a covered peril on homeowners insurance. The common misconception is that water is covered on the policy, so that must include floods too. Wrong! There is a difference between water coverage and flood coverage. Water coverage on a home insurance policy in Texas only includes accidental and sudden leakage from a plumbing system or appliance. Some home insurance polices also include continuous leakage of water, for example a leaky shower pan behind the wall. Another coverage that should be on your home insurance policy is water backup from sewers or drains. Water backup offers coverage when the storm drain floods and backs up into your house and causes flood damage.

Flood insurance is only sold thru licensed agents of FEMA’s National Flood Insurance Program or NFIP. Flood insurance covers your home or business from an overflow of water from a lake or stream. Flood insurance is also available for renters and commercial properties. If you have a mortgage and your property is in a Flood Zone, the mortgage company will require you to purchase flood insurance. However, nearly 20% of all flood claims come from low to moderate risk areas.

Most home insurance policies pushed by loan officers and inexperienced insurance agents DO NOT include water coverage at all. It is important that you have an experienced insurance agent to review your current home insurance policy yearly and make the proper recommendations.

Our office offers a FREE Texas homeowners insurance review and flood insurance coverage in all 50 states. Contact us at 214-275-8372 or online at www.hanksgroup.com

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