When it comes to protecting your home, understanding your insurance options is crucial. Many homeowners assume that their homeowners insurance covers all types of disasters\u2014including floods. Unfortunately, that assumption can be a costly one. In reality, homeowners insurance and flood insurance are two distinct policies, each offering protection from different risks.<\/p>\n\n\n\n
At HANDS, we aim to make housing education accessible and practical. In this article, we\u2019ll explain the key differences between homeowners insurance and flood insurance, what each policy covers, and when you might need one, the other, or both. If you\u2019re a homeowner or planning to become one, this guide will help you make informed decisions about protecting your property.<\/p>\n\n\n\n
Homeowners insurance is a policy that provides financial protection against damages to your home and personal belongings due to a variety of covered events. It also offers liability coverage if someone is injured on your property.<\/p>\n\n\n\n
Most standard homeowners insurance policies include:<\/p>\n\n\n\n
One of the most important exclusions in standard homeowners insurance policies is flood damage. Damage caused by flooding, whether from heavy rain, hurricanes, or rising rivers, is not<\/em> covered. For that, you need a separate flood insurance policy.<\/p>\n\n\n\n Flood insurance<\/strong> specifically protects your home and belongings from water damage caused by flooding. It is usually offered through the National Flood Insurance Program (NFIP), but some private insurers also provide policies.<\/p>\n\n\n\n Flood insurance typically includes two types of coverage:<\/p>\n\n\n\n This is a question we hear a lot at HANDS: Why do I need flood insurance if I already have homeowners insurance?<\/strong><\/p>\n\n\n\n The simple answer: Flooding is considered a high-risk event and is treated as a separate hazard. Insurance companies handle it differently due to the extensive damage and high costs floods can cause. As a result, you must purchase flood insurance separately to be protected from water damage caused by flooding.<\/p>\n\n\n\n If you live in an area with low flood risk and your lender does not require flood insurance, homeowners insurance might be sufficient\u2014but only for the covered events listed in your policy (fire, wind, theft, etc.).<\/p>\n\n\n\n You should seriously consider flood insurance if:<\/p>\n\n\n\n If you want comprehensive protection for your home, having both policies is the best option<\/strong>. Homeowners insurance and flood insurance work together to fill coverage gaps.<\/p>\n\n\n\n Flood insurance may be required by your lender if your home is in a high-risk area. Even if it\u2019s not required, you can check your flood risk using FEMA\u2019s Flood Map Service Center. Keep in mind:<\/p>\n\n\n\n Talk with your insurance agent and HANDS’ local Housing Counselors to understand your risks and options.<\/p>\n\n\n\n The cost of flood insurance depends on:<\/p>\n\n\n\n On average, flood insurance through NFIP costs about $600 per year, but rates can vary.<\/p>\n\n\n\n At HANDS, we know navigating insurance can be overwhelming. We\u2019re here to:<\/p>\n\n\n\n We believe in empowering homeowners through knowledge and support. If you have questions about homeowners or flood insurance, reach out to our team.<\/p>\n\n\n\n No. Renters insurance, like homeowners insurance, does not cover flood damage. You can purchase separate flood insurance for your personal belongings.<\/p>\n\n\n\nWhat Is Flood Insurance?<\/strong><\/h2>\n\n\n\n
What Does Flood Insurance Cover?<\/strong><\/h3>\n\n\n\n
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Common Flooding Sources Covered:<\/strong><\/h3>\n\n\n\n
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What It Does NOT Cover<\/strong><\/h3>\n\n\n\n
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Why Doesn\u2019t Homeowners Insurance Cover Flood Damage?<\/strong><\/h2>\n\n\n\n
Do You Need Both Types of Insurance?<\/strong><\/h2>\n\n\n\n
When Homeowners Insurance Is Enough<\/strong><\/h3>\n\n\n\n
When You Should Have Flood Insurance<\/strong><\/h3>\n\n\n\n
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When You Need Both<\/strong><\/h3>\n\n\n\n
Comparing Policies: Homeowners vs Flood Insurance<\/strong><\/h2>\n\n\n\n
Feature<\/strong><\/td> Homeowners Insurance<\/strong><\/td> Flood Insurance<\/strong><\/td><\/tr> Covers flood damage?<\/td> No<\/td> Yes<\/td><\/tr> Covers fire\/wind\/hail?<\/td> Yes<\/td> No<\/td><\/tr> Covers theft or vandalism?<\/td> Yes<\/td> No<\/td><\/tr> Covers personal belongings?<\/td> Yes<\/td> Yes (if selected)<\/td><\/tr> Covers temporary housing?<\/td> Yes<\/td> No<\/td><\/tr> Required by mortgage lender?<\/td> Often<\/td> Only in high-risk zones<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n How to Determine If You Need Flood Insurance<\/strong><\/h2>\n\n\n\n
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How Much Does Flood Insurance Cost?<\/strong><\/h2>\n\n\n\n
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How HANDS Can Help<\/strong><\/h2>\n\n\n\n
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FAQ: Insurance Questions Answered by HANDS<\/strong><\/h2>\n\n\n\n
Does renters insurance cover flood damage?<\/strong><\/h3>\n\n\n\n
What if I can’t afford flood insurance?<\/strong><\/h3>\n\n\n\n