What's The Difference: Homeowners Insurance Vs. Flood Insurance

The purchase of your home is likely the most important one you will make in your lifetime. Your home is not only a safe place for your family, but it's also one of your most valuable assets. The only way to protect your investment is by purchasing full and comprehensive insurance, including homeowners and flood insurance.

Because the worst can always happen, it's important to be prepared for the unexpected. But what's the difference between homeowners insurance and flood insurance? Let's take a look to find out.

What is Homeowners Insurance?

Unfortunately, many homeowners believe that homeowner's insurance is the only type of coverage they need – especially first-time buyers. Homeowner's insurance policies may seem comprehensive at first glance. Although insurance companies differ, most homeowner's insurances in Beaumont typically cover risks such as damage to your roof from flying debris or power outages after natural disasters.

Although the specifics change depending on who provides the insurance, most policies include accidental water damage, which gives people the false idea that they are also protected against floods. On the other hand, homeowner's insurance usually doesn't cover any damage caused by flooding, which is a big distinction between the two types of insurance.

You could be left with expensive repair bills if you do not have a flood insurance policy. Most standard homeowner's policies only cover small leaks from storm rain damage or broken water pipes. If you live in a high-risk zone for flooding, your mortgage lender will likely require that you purchase a separate flood insurance policy.

What is Flood Insurance?

Although water damage and flood damage may look the same, they are different. Homeowner's insurance typically covers water damage that has occurred to the home due to exterior forces, like a broken window or burst pipe.

On the other hand, a flood is caused by water that rises or spills over onto usually dry land. Several types of flood damage include overflowing water from nearby sources, rainwater seeping into your basement due to oversaturated soil, flash flooding or mudslides from heavy rains, and storm surges that bring in too much ocean water. A storm surge is a rise of water above the normal level due to weather conditions, typically associated with low pressure in the atmosphere. If you live in an area often hit by storms but do not have flood insurance in Beaumont, TX, any damage caused may not be covered.

Some people might not want to spend extra money on this type of insurance if their home has not been flooded in recent years. However, families without this insurance can see their lives turned upside down financially if a natural disaster does strike and they are not covered.

When comparing homeowners insurance vs. flood insurance, it is worth it to have both. You never know when an unexpected event will happen, and it is always better to be safe than sorry!

How To Respond To Water Or Flood Damage?

Although the insurance process changes depending on what caused the flood, there are initial steps you should always take. Homeowners' insurance plans often require that customers take all possible precautions to mitigate damage in the event of an incident. Therefore, you must familiarize yourself with this information.

Immediately dry wet areas and provide increased air circulation to discourage mold growth. To prevent further damage, it is important to cover up any exposed areas of your home, such as a hole in your roof or broken window. You can use a tarp or other material to do this. This helps prevent more water damage from occurring, as well as helps the dehumidification process.

Confirm that all valuables are stored safely if you need to leave your home. Also, take pictures of the damage to your home and personal belongings, which will help with the insurance claim process.

Finally, call your insurance provider agent as soon as possible to start the claims process. They will be able to help you take care of everything else and get you on the road to recovery!

Related Reads: Everything you need to know about flood insurance in Texas.

The Bottom Line

It is important to get both homeowners insurance and flood insurance to protect your home and belongings. These two types of insurance cover different kinds of water damage, so it is essential to have both. If you are ever dealing with water or flood damage, remember to take all possible precautions to mitigate the damage and call your insurance agent immediately!