Flood Insurance vs. Home Insurance: A Side-by-Side Comparison

Most New Yorkers live in a bubble of misconception that homeowners insurance covers everything. Well, time to poke it! A homeowner’s insurance policy isn’t designed to cover floods and earthquakes. 

So, before the disaster hits and you get caught off-guard, understand the importance of both insurance. Here we will see the battle! Flood insurance vs. home insurance. A complete comparison between these two. But before we dive in, know that flood insurance is a separate peril that comes with separate policies. 

What is Homeowners Insurance?

A standard home policy is typically a bundle of different coverages. Though it’s not an all-catch mishap saver, it’s a very crucial safety net. It mainly protects you from common disasters that can damage your property. 

Homeowners Insurance Coverage:

Here is what flood insurance covers

• Dwelling/Hazard Insurance: Protects the physical structure of your home from specific perils.
• Personal Property: Covers your personal belongings inside the home. You can say movable furniture, amenities and more. 
• Liability: Protects you from lawsuits if someone is injured on your property.
• Additional Living Expenses: Pays for temporary housing if your home is uninhabitable due to a covered loss.

For more details on homeowners’ insurance and its coverage, read this blog. 

What Homeowners Insurance Doesn’t Cover?

Homeowners insurance policies cover a lot, but it’s not a foolproof solution. There are situations where home insurance policies will leave you alone with bills. 

• Floods
• Earthquakes
• Sewer backups 
• Mudslides

What is Flood Insurance?

As the name suggests, it’s design specifically for floods. However, the flood must meet basic criteria set by the National Flood Insurance Program. 

What’s an Official Flood?

Flood insurance doesn’t mean protection against all major and minor floods. It covers whether a large area is flooded by an inundated water flow. Further, two or more properties or more than two acres of land must be flooded to get coverage. 

What Does Flood Insurance Cover?

NFIP flood insurance provides two types of flood insurance coverage. Namely:

• Building Coverage: Covers the structure of your home and its foundation, including walls, ceiling, doors, windows, garage and other parts of the structure. 
• Contents Coverage: Covers your personal belongings. For instance, anything inside the house, like fans, a washing machine, carpets and more. 

You can buy these two separately or as a combo. The flood insurance is available through both NFIP and a private insurer. All you need is a smart broker from Apple insurance who can get cheap flood insurance rates for you. 

The Side-by-Side Comparison: A Key Difference

Homeowner insurance is a must-have for any person looking for stability in life. And the same goes for a flood insurance policy. According to a recent report 40% flood claims are made from areas with zero flood risk.

Here is a detailed comparison between these two essential policies. 

• Purpose: Home insurance is mostly a general purpose. It covers various perils. On the other hand, flood insurance is for one specific peril (flooding).
• Coverage: Home insurance covers dwelling, personal property and liability coverage if you are held liable for an accident on your property. Flood insurance covers buildings and contents only. 
• Provider: Homeowners insurance is sold by private companies. Flood insurance is primarily through the NFIP, but private options are also available. 
• Cost: The cost of home insurance varies based on many factors. Flood insurance rates are based on your property’s flood risk. Typically, a homeowner’s insurance policy is more expensive than flood insurance. 

Final Verdict:

For people who prefer a stress-free life (everyone does), both home and flood insurance are essential. Although there is no restriction to buy both, neither does the federal government require you to have these insurance policies in place. But every property owner must have these insurances in place. 

Additionally, buying high-risk insurance policies is a good idea if you have experienced a disaster in recent years or if the location is prone to damage. You can get the best insurance policies by contacting Apple Insurance providers. With decades of experience, we provide unbeatable insurance quotes.

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