Flood Damage & Homeowners Insurance
Updated March 3, 2021 . AmFam Team
You can depend on your home insurance policy for financial help after certain types of water damage caused by rain. But qualifying for coverage really depends on the source of the water and on how the damage occurred. For instance, if a storm opens a hole in your roof, and water to leaks in and your valuable personal property is destroyed, your homeowners policy typically provides insurance coverage.
But what about insurance for floods? Although most homeowners policies don't cover flood damage, options for additional protection are available. You can pick up coverage for floods with the National Flood Insurance Program, and that can make a big difference when the water starts to rise near you.
Let's take a look at what you can do to help ensure your home is protected from rain and flood damage.
Table of Contents:
Does Homeowners Insurance Cover Water Damage From Rain?
When Is Damage From Rain Not Covered by Homeowners Insurance?
Does Homeowners Insurance Cover Water Damage From Floods?
How to File an Insurance Claim for Rain or Flood Damage
Flood Safety and Protection Tips
Find the Homeowners Coverage You Need Today
Does Homeowners Insurance Cover Water Damage From Rain?
With American Family Insurance, your base homeowners policy provides replacement cost value (RCV) coverage for losses to your dwelling other than losses to your roof caused by wind and hail. If your roof is eligible based on its age and type (e.g. shingles, tiles, slate, wood shake, etc.), roof replacement cost coverage for windstorm and hail is an optional coverage that is added to your policy. When active, you’ll have coverage for the full cost to repair or replace your roof.
If your roof doesn’t qualify, your homeowners policy will provide actual cash value (ACV) coverage. Your roof’s ACV is calculated by starting with what it would cost to repair or replace it new today, and then subtracting depreciation for factors such as age, condition and obsolescence.
Take a look at the following scenarios and learn about how rain damage is managed by your homeowners policy:
When rain gets in from storm damage
If the wind from a thunderstorm blew a tree over that punched a hole in your roof — and rainwater poured into your home for half an hour — you’ll likely be covered.
When rain, snow and ice infiltrate your roof
Ice dams can form when snow melts on your roof and the water re-freezes into large icicles across your gutters. That repeated freezing and thawing can stress shingles. Then water damage to the interior of your home, including the ceiling and walls, can occur under the right conditions. When water damage results suddenly and unexpectedly from a change to the protective shell of your home due to an ice dam situation, your homeowners insurance will provide coverage.
When vandalism results in rain damaging your home
Suppose the picture window in your living room is broken by vandals while you’re away on vacation. And after arriving home, you find heavy rains have resulted in water damage. Your homeowners coverage will probably help cover the costs to make repairs and restore your home.
When Is Damage From Rain Not Covered by Homeowners Insurance?
Is all rain damage covered by insurance? Its an all-too-common question homeowners ask, sometimes after the damage is already done. There are some instances when rain damage is not covered with your homeowners policy. Take a look at a few common issues that usually aren’t covered:
When the water damage is gradual
If rainwater seeps into your basement through cracks in the foundation, or if water flowed in through an egress window over time, you won’t be covered with a standard homeowners policy. In most cases, coverage will apply when the water damage is sudden and accidental in nature. If temperatures dip below zero and a frozen, burst pipe damages your washing machine and utility room, your home coverage can help with repair or replacement costs.
When water damage is the result of negligence
A poorly maintained roof can unleash a flood of rainwater into your home that may not be covered. When your roof isn’t maintained properly, it can fall into disrepair and the resulting damage may not be covered with your homeowners policy.
Does Homeowners Insurance Cover Water Damage From Floods?
Your standard homeowners insurance policy doesn’t provide protection for flood damage. However, you can purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP). Most flood events don’t result in a Presidential Disaster Declaration, homeowners who experience flooding in their homes shouldn’t rely on federal disaster aid.
Given the right circumstances, you may be able to file a claim for flood damage with the National Flood Insurance Program with active coverage. To give you an idea, here are just a few ways this flood insurance policy helps protect your home.
What does the National Flood Insurance Program (NFIP) cover?
You’ll find important coverage with a NFIP policy, which can be purchased through your American Family Insurance agent (Opens in a new tab). It can offer a lot of peace of mind if you’re living in a floodplain or your area’s prone to frequent flooding. Here’s a sampling of what’s covered under the NFIP:
- Your home’s foundation and staircases attached to it
- Your home’s plumbing and electrical systems
- Fuel tanks on your property and the fuel within them
- Solar panels and related energy equipment
- Well water pumps and storage tanks
- Heat pumps, sump pumps, furnaces and water heaters
- Built-in appliances like dishwashers as well as refrigerators, stoves, etc.
- Cisterns and the water they contain
- Carpeting that’s permanently installed over unfinished sub-flooring
- Unattached garages
- Drywall, wallboard, paneling, cabinets and bookcases
- Window blinds
What’s not covered under the NFIP
Is all flooding covered by insurance? Not necessarily. Because of that, it’s important to know what exclusions apply under the NFIP. Take a look as some of the ways you won’t be allowed to file a claim for flood damage when enrolled in the National Flood Insurance Program:
- Any currency, valuable papers like stock certificates and precious metals lost or destroyed
- Preventable mold or mildew damage that’s not related to the flood
- Earth movement events even if the flood caused the damage
- Cars and other self-propelled vehicles
- Trees, plants, wells, decks, patios, septic systems, pools
- Financial losses that are the result of your business being interrupted by the flood
- Additional living expenses you may need while your home is being repaired
- Loss of use or access to the property
How much does flood insurance cost?
According to the Federal Emergency Management Agency (Opens in a new tab), the average flood insurance policy costs around $450 annually. But keep in mind that the average flood insurance claim costs $39,000. Your specific rate will depend on where you live, your property and other factors, so talk to your agent (Opens in a new tab) to learn about purchasing National Flood Insurance Program coverage.
How to File an Insurance Claim for Rain or Flood Damage
Rain damage happens when you least expect it. But with American Family, we’re an insurance company that will help you recover from water damages in your home as quickly as possible. And if you’ve purchased a separate National Flood Insurance Program policy and your home experiences flooding, we’re going make sure you get the help you need.
Here’s how to file a claim:
Log into My Account (Opens in a new tab) or use the MyAmFam app. And by initiating your claim with one of these options, you’ll also experience additional benefits including:
- Filing anywhere, any time
- Tracking the status of your claim
- Easily communicating with your claims representative by email or phone
You can always call us at 1-800-MYAMFAM (1-800-692-6326) to speak directly with a claims representative or contact your American Family Insurance agent (Opens in a new tab).
Flood Safety and Protection Tips
When your neighborhood is under a flood warning and watch, it’s time to act quickly. Because floods can knock out power and limit access to and from your area, it’s important to also have a plan in place. Take a look at these ideas to help you weather the storm when floods are headed your way:
1. Prepare in advance
Make a natural disaster kit and store it in a protected area, away from potential floodwaters. Pack it with an emergency wind up radio, batteries, flashlights and protein bars.
2. Stay aware of changing conditions
As flood waters advance, new warnings and details about affected areas will be reported. Download a weather app that references multiple weather sources. This is key for getting the forecast right and can make a big difference when the water starts to rise. Consider apps like Dark Sky and Carrot Weather for early warning and real-time flood warning maps.
3. Move valuables out of harm’s way
Relocate family heirlooms, expensive electronics and other items that can be relocated. Store them safely in an area away from potential floodwaters.
4. Create a communication tree
Long before any foul weather or flooding occurs, take time and talk with your family about the ways you can stay in touch during a power outage or weather emergency. Use social media to set up a friends list so you’re ready when you need it.
Find the Homeowners Coverage You Need Today
As a homeowner, it’s so important to have the right coverage in place before you need it. With the help of your American Family Insurance agent (Opens in a new tab), you’ll be able to review your coverage options and choose insurance that best suits your home and your needs. With it, you’ll have more peace of mind when the weather turns.
*Customers who bundle auto and home insurance policies may save up to 23% on both policies together (as of October 2021). Discounts may vary by state, property, policy form and company underwriting the auto and/or home policy. Discounts may not apply to all coverages on an auto or property policy.
This article is for informational purposes only and includes information widely available through different sources.
Related Articles
- Why Bundle Your Insurance?
Having insurance is an easy decision — after all, it protects the things you work so hard for in life. Another easy decision? Bundling your insurance. From your car, home and even your family's financial well-being, you have a lot to protect. Make things simple and take control what you pay for by making the smart choice to bundle.
How Much Do You Save By Bundling Insurance?
At American Family Insurance, there are many ways you can save by bundling insurance, including:
Home and auto insurance bundle
Our most common insurance bundle, combining your home and auto coverage can save you up to 23% on both policies together.*
Auto and renters insurance bundle
Protecting your valuables and your car can lead to big savings. When bundling, you can save up to 5% on your auto and renters policy.**
Car and motorcycle insurance bundle
You can score steep discounts when you bundle insurance for your different vehicles. Learn more by checking out our auto insurance and motorcycle insurance pages.
Take a look at what it means to bundle and all the benefits you’ll enjoy when you bundle your insurance with American Family Insurance.
- What Is Umbrella Insurance?
Umbrella coverage offers additional financial protection over and above the personal liability limits of other currently active insurance policies you have. Think of umbrella insurance as a powerful financial shield that can help protect your savings and future earnings under certain situations.
Whether you’re found at fault for a multi-vehicle crash on the interstate, or a guest slips and falls down the icy steps outside your home — the added coverage in an umbrella policy can kick in and help cover any remaining costs should the liability limits on your underlying car or homeowners max out.
And umbrella insurance coverage doesn’t stop there. Liability lawsuits can come in many forms and the hefty financial judgements that frequently accompany them can also drain your savings. Today, let’s take a closer look at umbrella insurance to help you understand how this coverage can help protect your financial dreams and everything you’ve worked so hard for.
- Tax Identity Theft
You’ve probably heard the saying, “the early bird gets the worm.” But what does that mean for Americans who file their tax returns early?
To most of us, it usually means quicker refunds. But early filing could also mean significantly reducing your chances of falling victim to a growing trend in identity theft. It’s called tax return identity theft and it’s affecting Americans at an alarming rate. In fact, per the Taxpayer Advocate Service (TAS), an independent organization within the IRS, 5.2 million tax returns were tagged as fraudulent in 2020. Not to fret! We’ll help you understand tax related identity theft, the signs to look out for, and what to do if it happens to you.
What Is Tax Identity Theft?
Tax return identity theft is the act of filing a return using a stolen identity and taking the victim’s refund.
Equipped with three simple ingredients — a name, birthdate and Social Security number — the thief can commit tax fraud resulting in delayed or stolen refunds. And while a swiped refund may seem like a worst-case scenario, thieves may also use your stolen identity to obtain employment, an act with even greater impact.
When an identity thief uses your SSN for employment, all the income they earn under your identity must be reported. Meaning that when you go to file your taxes and the earned income numbers don’t match, the IRS will flag your return as suspicious. This can have significant financial impacts if taxes on the unclaimed earnings are imposed and can lead to prolonged stress with a request to audit your taxes.
The victims of fraudulent tax return identity theft can face stressful obstacles on their path to recovering from a stolen tax return and identity theft. One of the most significant steps in protecting your financial future from being compromised is education and understanding how this type of theft occurs, and what to do if you find yourself in this situation.
- Dog Liability Insurance for Homeowners
Whether you raised him from a pup or adopted her later in life, you don’t just view your dog as a pet: you consider them a member of your family. According to a survey by the American Pet Products Association, almost 90 million dogs are owned as pets in the United States — and while your dog offers a whole lot of love and laughter, they can also be a potential liability. Luckily, we offer dog-friendly homeowners insurance.
At American Family Insurance, we love pets and understand that they’re part of your household. That’s why we want to make sure you understand exactly how your dog affects your homeowners insurance and ensure that you have the proper protection in place not only for your home, but for your dog, too.
Is My Dog Covered by My Homeowners Insurance?
Whether or not your dog is covered by your homeowners insurance depends on who you have as an insurance provider. With American Family, your home, renters, manufactured home or condo policy will provide dog liability coverage — a form of financial protection against liability claims, including lawsuits for accidental bodily injury or damage to someone’s property. This includes paying for medical expenses if your dog injures someone or helping cover costs if your dog destroys someone else’s property.
It's important to note that your homeowners insurance won’t cover damage done by your pets to your own home, such as if your dog chews a hole in your sofa or scratches your doors or woodwork. And, keep in mind, your homeowners policy doesn’t cover injuries to you and the residents of your household. It only pays for injuries to others.
Need insurance for your dog? Consider pet insurance from an American Family Insurance agent to help you care for your pet through all stages of its life.
We also offer a special add-on pet coverage that provides up to $1,000 for veterinarian services, final expenses (like burial or disposal fees) or the cost to replace your dog if death occurs. This coverage is applicable after a covered property loss.
Does Homeowners Insurance Cover Dog Bites?
Whether you’re walking your dog through the park or at home playing in the yard, the liability portion of your homeowners insurance policy will help cover you if your dog bites someone or if they bite another dog.
Remember, a dog can bite out of fear, to protect their territory, to correct another dog’s behavior or for several other reasons. Because dog bites occur for a variety of reasons, keep these tips in mind to prevent your favorite family pet from biting:
- Keep your dog on a leash.
- Don’t leave your dog unattended with strangers or children.
- Make sure people respect your dog’s space.
- Spay or neuter your dog — this helps reduce their desire to roam and fight with other dogs. According to the National Canine Research Foundation, neutered dogs are three times less likely to bite.
- Socialize your dog. Introduce your dog to many people and situations so it isn’t nervous or frightened under normal social circumstances.
- Enroll your pooch in a dog training class. Not only does it help your pet learn better behaviors, but it teaches you to be a good pet owner, too.
And it’s not just bites that cause liability incidents — if your overly excited pup jumps on someone, knocks them over and breaks their wrist, you’ll be able to cover their medical expenses with the help of your liability coverage.
How Much Coverage Do I Need for My Dog?
Your homeowners policy has a liability “limit” that, in the event of a loss, will cover up to a certain dollar amount. Your liability limit is the amount available to cover anything from a dog bite to your neighbor slipping and falling on your icy steps. To understand your potential pet liability cost and the amount of coverage you need, think about the amount it may cost for medical expenses and if someone were to sue you. Sometimes this number is well into the six figures! For instance, if your liability amount is $300,000 but your dog bit someone and medical expenses and legal fees came to $500,000, you’ll be responsible to pay the remaining $200,000.
If you want to ensure you have adequate coverage in place, an umbrella policy is an added layer of protection which provides a much higher level of coverage to financially protect you from unexpected incidents with your dog.
Homeowners Insurance Dog Breed Restrictions
Unfortunately, not all dogs will meet the criteria to be included under a policy. While most dog breeds won’t impact your eligibility for homeowners coverage, there are some breeds that require additional considerations, such as whether your yard is fully and securely fenced. You must also provide certain documentation to be considered eligible, like evidence of up-to-date annual vaccines and proof that your dog has been spayed or neutered.
It’s also important to note that, depending on your dog’s prior history (e.g. history of biting, if they were trained or used as an attack or guard dog), they might be subject to a dangerous dog liability limit that reduces their liability coverage for losses to $25,000.
Your American Family Insurance agent can help you determine the specific requirements for insurability based on the breed of your dog.
At American Family, we want to help protect all the things that matter most to you. Connect with your agent and gain peace of mind that you have the right coverage in place for your four-legged friend.
This article is for informational purposes only and includes information widely available through different sources.
