How is Water Damage Different Than Flood Damage?

If your Meridian, ID home has flooded, you might not care what type of water damage was incurred, as long as your family is safe. Your insurance company very much does care though, as your coverage only kicks in for some of the damages. What’s the difference between water damage and flood damage?

Flood damage is that which is caused by bodies of water such as lakes, tidal waters, or inland waters. Water damage might occur through leaks caused by broken windows, appliance overflows, or broken pipes.

If you’re looking for more information on the differences between water damage and flood damage, you’ve come to the right place! In this article, you’ll learn what constitutes each type of damage as well as when or if your homeowner’s insurance will cover it. 

First, it's imperative to have, at least, a basic understanding of water damage. Most types of storms constitute this form of damage. For example, you had a bad hailstorm and a piece of hail broke the window in your living room. Water begins seeping into the room, ruining your floors and walls. This is water damage.

Another example of weather-related damage could be a thunderstorm in which several inches of rainfall accumulate. If the rain penetrates your roof and wrecks the adjacent floors and walls of your home, that too would qualify as water damage rather than flood damage.

Any of the fixtures or appliances in your home can begin leaking water, which would count under this umbrella as well. When a pipe bursts and causes a serious mess throughout your house, this too is water damage.

Homeowner’s insurance will usually cover water damage as it meets the definitions above. However, there is a caveat to that. If you knew that your home had problems, but you declined to fix them and then water damaged occurred, you might not be eligible for assistance. Negligence can also disqualify you. 

According to Investopedia, between 2014 and 2018, the third top reason for insurance claims was water. The average price of each claim was $10,949, so your insurance claim could be sizable as well. 

Flood damage is usually caused by natural resources. As an example, perhaps you live near a lake or shore. The land around your property erodes due to the water and then collapses. The resulting damage would be considered flood damage.



Mudflows can also lead to flood damage, as can surface and runoff waters occurring at higher rates of accumulation than normal. From lakes and rivers to tidal waters and inland waters, when these bodies of water overflow, it all usually falls under the umbrella of flood damage. 

You’ve had your homeowner’s insurance policy for years. If flood damage wrecks your home, will your insurance pay for some of the damages? According to insurance brand Allstate, the answer is a hard no.

That’s likely because there are so many factors that might be at play, many of which are outside of your control and the control of your insurers, such as the behavior of nearby bodies of water or land erosion rates. That makes insuring homeowners against flooding too risky, so most agents refrain from it.

If your home recently had flood damage, not water damage, does that mean you have to pay for everything yourself? Not necessarily. The Federal Emergency Management Agency or FEMA offers flood insurance through the National Flood Insurance Program or NFIP.

NFIP still has specific definitions of flooding that make you eligible or ineligible for their insurance coverage. The NFIP says that flooding is “an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.”

If your flood damage doesn't meet that definition, then it could be water damage. You should contact your homeowner's insurance provider to ask what your options are. Per the FloodSmart website through FEMA, your NFIP plan has two coverage options. The first is contents coverage and the second is building coverage.

If you opt for contents coverage, your NFIP insurance plan will safeguard your "valuable items" at a limit of $2,500. These other items are protected as well:

• Some carpeting
• Microwaves
• Window and portable air conditioners
• Washing machines and dryers
• Curtains
• Electronic equipment
• Furniture
• Clothing

Should you opt for the building coverage plan instead, here are some of the items that your flood insurance kicks in for:

• Well water pumps and tanks
• Detached garages
• Staircases
• Foundational walls
• Window blinds
• Cooking stoves
• Refrigerators
• Water heaters and furnaces
• Plumbing and electrical systems

No matter the plan you choose, not all items are protected by your NFIP flood insurance. Any personal items stored in your basement, for example, are ineligible under your insurance plan. Cars are also not on the list.

You can’t get your "valuable papers, stock certificates, precious metals, and currency" insured, nor can you rely on NFIP or other flood insurance providers to reimburse you for financial losses that occur when you can’t work due to the flood damage.

Having flood insurance is optional unless your home is in an area that your mortgage provider deems a high flood risk. 

Witnessing water seeping into your home can be terrifying. Before you call your homeowner’s insurance provider, make sure that the wreckage is caused by water damage, not flood damage. The latter will require you to take out your own separate insurance policy outside of your homeowner’s insurance if you want extra protection.