How does Flood insurance differ from homeowners insurance?

A standard homeowners insurance policy does not cover flood damage. In fact, it specifically excludes it. Flood insurance policies are separate from homeowners insurance policies.

A typical homeowners policy covers water damage from the "top down" or water damage caused by rain that’s carried by wind. Flood insurance policies cover everything from the "ground up,", that is, instances where rain water causes larger bodies of water to overflow and flood surrounding areas. If rain touches the ground before it causes damage to your home or building, then it’s flood damage.

Why Would NFIP Pay Me Less Than My Full Payout?

Most of the time, NFIP is operating in a disaster zone where a large storm event has caused flooding. Resources can be scarce in these areas to begin with. On top of that, the adjusters hired to inspect damage to homes and buildings are hired to work quickly. This can often lead to damage assessments that miss both hidden and obvious damage and as a result, homeowners and building owners receive no payout or a lower payout than they might need.

That’s why you need an experienced attorney who knows how these policies are written and enforced. The Morgan & Morgan Insurance Recovery Group is here to review your claim for free.

Is Flood Insurance Provided by Private Companies or NFIP (National Flood Insurance Program)?

The difference in flood and homeowners insurance policies is that 99% of flood insurance is issued from a federal government agency: the National Flood Insurance Program (NFIP), administered by FEMA. This means that deadlines are much shorter and are enforced more strictly than standard homeowners or building owners policies. Missing important dates can cause your case to be dismissed.