What is the Difference Between Flood Insurance and Homeowner’s Insurance?

Homeowners are often confused about exactly what their homeowner’s policy covers and its exclusions. Flood coverage is one of the most misunderstood of all insurance options in South Florida. There is one major differences in a homeowner’s policy and a flood insurance policy.

Homeowner’s Policy

A typical homeowner’s policy covers indoor flooding situations. It encompasses burst or leaky pipes to defective appliances such as water heaters or dishwashers. The policy will provide coverage for damage resulting from a hurricane and storms in which the roof is damaged, allowing water to enter the home, unless that’s listed as an exclusion on the policy. A homeowner’s policy doesn’t cover flooding due to storm surges or rising flood waters.

Flood Insurance Policy

To have coverage for flood damage due to the effects of a hurricane, individuals will need a separate flood insurance policy. That coverage is provided through the National Flood Insurance Program (NFIP) that’s managed and administered through the Federal Emergency Management Agency (FEMA).

Climate Change and Storms

The Earth’s changing climate is resulting in weather patterns that generate more frequent and destructive storms. Florida is a low-lying state, with the average elevation just 6 ft. above sea level. Flood waters from hurricanes are reaching locations that have never experienced flooding before.

The aftermath of the last few hurricanes in Florida cost insurance companies billions. The majority of insurers no longer offer flood insurance, some companies became insolvent, while others left the state completely. That leaves NFIP policies the only option for South Florida residents. The policy can help cover damage to structures or personal belongings, making it essential that individuals obtain an amount that will cover as much of their loss as possible.

Water Wreaks Havoc on Homes

Even a single inch of water in the home can result in $25,000 in damage. Without a FEMA-based flood insurance policy, individuals will find themselves responsible for the cost of repair or rebuilding entirely out of pocket.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487