Homeowners Policy Vs. Flood Insurance

Flood insurance can help protect your investments.

Flood insurance can help protect your investments.

Your home can be one of the biggest purchases of your life. Homeowners insurance helps you protect his important investment and may make the difference between minor inconveniences and major financial losses. While a standard homeowners insurance policy provides basic coverage, a special policy can protect against losses incurred during floods.

Homeowners Policy

Homeowners policies may vary, depending on your insurance company, your home and your circumstances. Insurance companies offer several levels of coverage to choose from, allowing you to select the amount of deductibles and premiums you will pay for your policy. Mortgage companies often require a minimum amount of coverage to reimburse the amount of your loan. While your basic policy may reimburse your losses from several causes, such as fire and theft, it won’t pay for flood damage.

Flood Policy

The National Flood Insurance Program is a federal program that provides insurance coverage for damages due to floods. While your homeowners insurance may pay for water damage due to broken pipes, flood insurance pays for damages caused by the rising of a body of water that covers normally dry land. You can purchase this national flood damage coverage from your insurance agent or your local Federal Emergency Management Agency office.


Your insurance agent can tell you if your house is located in a flood zone. Although you may never experience a flood, living in a recognized flood zone increase your risk of flood damage. You may need flood insurance if your home is near a river that could overflow its banks, located on a coastal region or against a hill that may experience mudslides.


Read your homeowners policy carefully to determine what your insurance company won’t cover, such as tidal water and sewage backups. Deciding whether you need a special policy to cover damages due to floods depends on your circumstances. If you carry a mortgage on your home, your lender may require you purchase this type of coverage. If you own your home, consider your flood risk, as well as how much money you can afford to lose due to uncovered expenses.

About the Author

Piper Li, a professional freelance writer, began writing in 1989. Her articles appear online at Biz Mojo, Walden University and various other websites. She is the co-editor for "Kansas Women: Focus on Health." With a bachelor's degree in journalism from Mesa State, Li enjoys writing about health, horticulture and business management.

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