Is Flood Insurance Usually Included Under Homeowner's & Renter's Policies?

Homeowner's insurance does not cover flood damage.

Homeowner's and renter's policies do not cover flood damage. Only a flood insurance policy covers damage from this natural hazard. The National Flood Insurance Program (NFIP), administered by the Federal Emergency Management Agency, offers flood insurance to property owners and renters in participating communities. In non-participating communities, private agents write flood insurance not backed by NFIP; these policies can cost two to three times as much.

Homeowner's Policy

A standard homeowner's insurance policy covers hail, fire, lightning and wind damage. It does not cover damage from general wear and tear, floods or earthquakes. A homeowner's insurance policy covers the replacement or repair of the structure up to the policy limit, the contents of the home, the landscaping and the ancillary structures and liability insurance and additional living expenses up to 20 percent of insured home value.

Policy Updates and Additional Endorsements

Review your homeowner's policy on at least annually. If you have made improvements to your home or the home values in your area have increased, increase your coverage in accordance. You can also increase the coverage limits of the liability and additional living expenses, as well as add endorsements or floaters to fully cover expensive items such as furs and jewelry that fall under the contents coverage. Without added coverage a standard homeowner's policy only covers between $1,000 to $2,000 collectively, not per item.

Renter's Insurance

Renter's insurance covers the loss of your possessions due to lightning, fire and wind. It also includes vandalism, theft, explosion and water damage not caused by floods, such as if a burst pipe damages your kitchen appliances. Like a homeowner's policy, you'll need additional coverage to completely cover the replacement of valuables. Renters may purchase contents-only NFIP flood insurance to protect themselves from flood losses.

Flood Insurance

The NFIP offers federally backed flood insurance at reduced rates to homeowners, renters and businesses in NFIP-participating communities. Property owners in high- or coastal high-risk zones with a federally backed mortgage must purchase flood insurance. Owners or renters in low- to moderate-risk zones have the option of purchasing coverage.

Flood Insurance Estimates

The NFIP provides an online tool (see Resources) for determining the flood zone your property lies within and providing a premium estimate depending on the amount and type of coverage you choose -- structural, contents or structural and contents. You must enter the street address, city, state, ZIP code and whether the address is residential or commercial.

References

• Insurance Information Institute: What is in a standard homeowners insurance policy?
• "The Wright County Monitor": What are the benefits of participating in the NFIP?
• Insurance Information Institute: Can I get insurance if I rent my home?
• FloodSmart: About the National Flood Insurance Program: When Insurance is Required

Resources

• FloodSmart: One-Step Flood Risk Profile