Many individuals have the misconception that their homeowner's insurance covers flood damage. Likewise, many people feel that they don't live in a flood zone. However, it has been found that 30% of people who live in areas not prone to flooding report flood damage. The odds of a home receiving flood damage within a thirty year period is actually 25%. That is a pretty high percentage because water is virtually everywhere in some form, so everyone has the opportunity to have to deal with flood damage at some point in their life. If you have ever been in this situation, or think you could ever be, do read on for more information.



Because of the misconception that flood damage is covered under their regular home insurance policy, so many have to pay for the damages out of their pocket. An unexpected flood can result in a very unexpected expense. Want another surprising statistic? Here it is: a person is 30 times more likely to lose their home in a flood than they are to lose it in a fire. You might be thinking, "But I don't live close to a body of water!" Well, sometimes flood damage is the result of a lot of rain or maybe you have pipes burst in your home and fill it with water quickly. Because of the many ways in which a home can become flooded, there is an average of $2.4 billion being paid out in insurance claims every year in flood damage.

Insurance companies define flood damage as resulting from any type of flood from water, poor seepage or poor drainage, and damage from mud. Many floods, however, are caused by natural events such as hurricanes, severe thunderstorms, and melting snow in the winter. These are things that are overlooked. A mere inch of water can cause significant flood damage. Think of it this way: It only takes two feet of water to wash away a car. Now, that really puts things into perspective when thinking about the impact that flood damage can have on a home or business.

Because an individual is only covered by insurance for flood damage if they have flood insurance, Congress enacted the National Flood Insurance Program. This allows those individuals who are at high risk for flooding to purchase adequate insurance. They also have the option of purchasing this insurance after the flood damage has occurred. This makes this type of insurance much different than most types. At one time, people had to pay for their flood damage out of their pocket because flood insurance was just too expensive to pay for, especially for those living in flood prone areas. Luckily, the government changed that with the National Flood Insurance Program. This takes care of the fact that flood damage is not covered under your homeowner's insurance and the fact that you may have been under the impression that your home never had a chance to acquire flood damage. At least now you know.