Quick learning: Check your policy

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Life skills & careersFinancial Literacy0:491 check-ins

About this video

Homeowners insurance usually covers water that comes from above, like rain through a damaged roof, but not floods, where water rises from the ground. Flood insurance is separate, often from the National Flood Insurance Program, and has a 30-day waiting period, so check your policy now.

You'll be able to

  • explain the difference between water damage from above and a flood.
  • explain why flood insurance must be bought ahead of time.

Key words

Homeowners insurance
Insurance on your home that covers many kinds of damage, but usually not floods.
Flood
Water that rises from the ground, such as storm surge or pooling water.
Flood insurance
Separate insurance for flood damage, often through the National Flood Insurance Program.
Waiting period
Time after buying a policy before it starts to cover you; 30 days for flood insurance here.
Transcript

- This is how you can lose everything and insurance still won't pay. It happened on my street during Hurricane Helene. If water hits your house from above, like rain through a roof or broken window, homeowners insurance usually covers it. But if water rises from the ground, like storm surge, or water pooling, that's a flood.

And homeowners insurance doesn't cover floods. So where the water comes in is everything. Flood insurance is separate. Most people get it from the National Flood Insurance Program. But there's a 30-day waiting period. So, check your policy today. Look for the word "flood."

If it's not there, you're probably not covered.

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