What Is the Difference Between Flood Insurance and Home Insurance?

Home insurance, also called homeowners insurance, protects your dwelling and belongings against a list of named perils. Those perils often include fire, wind, hail, lightning, theft, and sudden water damage from a burst pipe or an overflowing appliance. If a pipe breaks in your wall, your home policy usually pays for the water extraction, drying, and repairs.

The key limit is the source of the water. If water comes from above, like rain through a damaged roof, or from inside, like a plumbing failure, your home insurance may respond. But if water rises from the ground, such as a river overflowing or heavy rain pooling outside, that is considered flooding and falls outside a standard home policy.

The easiest way to tell is to look at the water source. If a tree branch punches a hole in your roof and rain pours in, that is wind and hail damage, so your home insurance likely applies. If a creek overflows into your yard and water enters your crawl space, that is flooding, so your flood insurance is the one to contact.

Some events are less clear, like a sump pump failure during a storm. In that case, the cause matters. If the pump broke from normal wear, your home policy might cover it. If floodwater overwhelmed the pump, the flood policy may be the right claim. Read both policies and keep copies of them handy.

If water enters your home, act quickly to reduce further damage. Turn off the water supply if the leak is from a pipe, and shut off electricity in affected areas if it is safe to do so. Move valuable items to a dry spot and take photos of the damage for your claim. Do not throw anything away until your insurance company tells you to.

For cleanup, you can call local water damage pros to extract standing water and dry out the structure. They can also inspect for hidden moisture and help with repairs like drywall or flooring. Their work is separate from your insurance claim, but they can document conditions that may be useful.