As if there weren’t enough different types of insurance policies out there already, flood insurance has to be yet another one. Homeowners in Colorado may not be the first to think about flood insurance, but flooding is a risk everywhere it rains, and evaluating whether you need flood insurance as an added protection is something every homeowner should consider no matter where you live.
Even though water damage is one of the most common reasons homeowners file insurance claims, it’s one of the most misunderstood areas of coverage. Not all water-related incidents are covered under standard homeowners insurance policies, and many homeowners only discover this after it’s too late. In this blog, we’ll break down what to know about flood insurance versus homeowners insurance so you can best protect your home and family.
What Does Homeowners Insurance Cover?
Standard dwelling policies protect your home and belongings from a wide range of risks, including fire, theft, wind and hail storms, and certain types of water damage, but water damage comes with a big ‘ol asterisk. The list of water damage exclusions under homeowner’s insurance policies is extensive. Be sure to review them carefully.
Homeowners insurance typically covers sudden and accidental water damage that originates from inside your home. Examples include damage caused by a burst pipe or a sudden roof leak would likely be covered under most policies as they are considered unexpected and accidental. On the other hand, homeowner’s insurance does not cover water damage resulting from external sources, such as floods. Additionally, damage caused by gradual issues, such as a slow plumbing leak or poor maintenance, is typically excluded.
Why You Might Need Flood Insurance
Flood insurance is a separate policy specifically designed to cover water damage caused by external flooding events. If you live in a high-risk area for flooding, your mortgage lender may require you to have flood insurance. And if you live in a low-risk area for flooding, premium costs for flood insurance are very low.
Contact Us at KK&P Law Firm with Questions about Insurance Law in Colorado
The difference between flood insurance and homeowner’s insurance coverage often comes down to the source of the water damage and the specific coverage each policy provides. Homeowner’s insurance covers many common risks, but it won’t protect you from flooding.
If you have questions about insurance policy coverage and what to do if your insurance claim was denied or underpaid, call our experienced team of insurance law attorneys at Kandell, Kandell & Petrie. We have more than 50 years of combined legal expertise and are here to ensure you receive the relief you deserve for your water damage insurance claim in the greater Denver area and throughout Colorado. Call us today to speak with one of our Denver claims advisors.
