How a Flood Is Defined by Insurance Companies

Flood insurance is important for those living in high-flood-risk areas.

Insurance companies have specific elements that define what a flood is and what is covered under a flood insurance policy. You should be aware of this definition and what it entails before you purchase a policy to protect your property.

Defintion

The definition from the National Flood Insurance Program of a flood is "a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property)..." A variety of circumstances can cause this to occur.

Flooding of Surface Waters

According to the definition above, flooding can be defined by runoff water from any starting source, such as lakes, streams, ponds and other bodies of water. This can also occur with heavy rains that can cause rapid accumulation that is not normal for the area. In other parts of the country, floods can also occur from the "overflow of inland or tidal waters."

Mudflow

This is another damaging aspect of flooding that falls into the official definition. When a mudflow occurs, the increasing water level can flow with a current strong enough to collapse soil along shores or banks. Erosion in the area can also make this condition worse. The effect is a liquid mud that flows with the water as it rises, which can cause greater damage.

Damage Covered Under the Definition

When you purchase flood insurance, the damage that is covered does not include the contents of your home. This kind of coverage has to be purchased separate from your flood insurance policy. This kind of coverage also will not pay over the limit that is established. Any part of your property that is damaged must be the result of a flood and not another incident.

Considerations

When purchasing flood insurance, it is crucial that you are aware of what the insurance companies defines a a flood, what is covered and what the policy limits are. This way you can purchase any additional insurance that you may need. Also, you should discuss any questions or concerns that you have about the policy with your agent.

References

• National Flood Insurance Program Summary of Coverage