Water-related damage can be a nightmare for homeowners and business owners alike. However, not all water damage is treated equally when it comes to insurance coverage. Many policyholders assume their homeowners or commercial insurance will cover any type of water damage, only to find out too late that floods and water damage are classified differently. Understanding these distinctions can save you time, money, and frustration when disaster strikes.
The Difference Between Flood Damage and Water Damage
Insurance companies differentiate between flood damage and water damage, and each type has its own coverage rules.
What is Flood Damage?
Flood damage is defined by the Federal Emergency Management Agency (FEMA) as a temporary condition where water or mudflow covers at least two acres of normally dry land or affects two or more properties. Flooding typically occurs due to natural events such as:
- Heavy rainfall
- Storm surges from hurricanes
- Overflowing rivers or lakes
- Rapid snowmelt
- Flash floods
What is Water Damage?
Water damage, on the other hand, refers to damage caused by water that originates from inside the home or building or enters due to a specific, isolated event. Common causes include:
- Burst pipes
- Roof leaks
- Appliance malfunctions (e.g., washing machine or water heater leaks)
- Sewer backups (unless specifically covered by an endorsement)
- Sudden plumbing failures
What Does Insurance Cover?
Flood Insurance Coverage
Most standard homeowners or commercial property insurance policies do not cover flood damage. Instead, property owners must purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer.
Flood insurance typically covers:
- Structural damage (walls, foundation, electrical, plumbing systems)
- Built-in appliances
- Permanently installed carpeting and flooring
- Personal belongings (if you have contents coverage)
- Cleanup costs
However, flood insurance does not cover:
- Additional living expenses (e.g., hotel stays while repairs are made)
- Landscaping damage
- Vehicles
- Preventable mold and mildew damage
Water Damage Coverage
Most homeowners and commercial property insurance policies do cover sudden and accidental water damage, provided it is not caused by negligence or poor maintenance.
Water damage insurance typically covers:
- Structural repairs
- Drying and water removal
- Mold remediation (if necessary and included in policy)
- Replacement of damaged belongings (depending on policy limits)
However, standard policies do not cover:
- Water damage due to gradual leaks or poor maintenance
- Sewer backups (unless you have additional coverage)
- Damage from water that enters due to flooding
How to File a Claim for Water or Flood Damage
If your property suffers water or flood damage, follow these steps to ensure a smooth claims process:
- Document the Damage – Take clear photos and videos of the affected areas, including personal belongings.
- Prevent Further Damage – If safe, take steps to mitigate damage, such as turning off the water supply or using fans to dry out wet areas.
- Review Your Insurance Policy – Determine if your damage falls under flood insurance or standard homeowners/commercial insurance.
- Contact Your Insurance Provider – Report the damage immediately and provide the necessary documentation.
- Work with an Adjuster – Your insurance company will send an adjuster to assess the extent of the damage and determine your payout.
- Hire a Professional Restoration Service – Once approved, begin the restoration process with a trusted company specializing in water or flood damage recovery.
Mid American Restoration specializes in water damage restoration and can help with your insurance claim.
Mid American Restoration has extensive experience working with insurance companies and is a preferred vendor for many leading insurance providers. We work directly with your insurance company to minimize the burden on adjusters while reducing the stress for homeowners dealing with water damage. Call Mid American Restoration now for immediate 24/7 emergency water damage restoration in Northeast Illinois and Southeast Wisconsin. Contact us to request help today!