Oh no! You wake up to find your kitchen is flooded! Will your homeowners insurance policy cover this damage? That depends on what type of insurance you purchased and how the water got there...
Types of insurance that can help:
There are two types of policies that cover losses caused by water, hazard insurance (homeowners or landlord policies) and flood insurance. These policies provide two different types of coverage that complement each other, but may not overlap.
Hazard insurance - Most homeowner policies and landlord policies cover damage to your house caused by a sudden and accidental water event, such as a burst pipe, wind- or storm-driven rain or melting snow. Water damage caused by poor home maintenance such as overfilled gutters, a poorly maintained roof, and condensation buildup due to inadequate ventilation or unrepaired leaks will generally not be covered. Also, these policies do not protect against flood damage.
Flood insurance - While flood damage to your house and its contents is not covered under your homeowners or landlord policy, it could be covered by a separate flood insurance policy, available through the National Flood Insurance Program from the Federal Emergency Management Agency (FEMA) if you purchase this type of policy. A flood is defined as a rising and overflowing of a body of water onto normally dry land. For insurance purposes, the word "rising" in this definition is the key to distinguishing flood damage from water damage.
Flood insurance is available to homeowners, landlords and renters, for both personal and commercial properties. The cost of this insurance will vary depending on the amount of insurance purchased and a property’s flood risk. Note that if the house is being purchased or refinanced coverage can become effective as of those dates otherwise coverage typically takes 30 days to take effect from the date of purchase of the policy.
Courtesy of our friends @ Trident Insurance Agency Company.