Flooding and Water Damage: What’s Covered and What’s Not  

At The Austin Agency, we know that water-related losses can be confusing, especially with North Carolina’s unpredictable weather and hurricane risks. Here’s what you need to know about coverage, exclusions and how our team can help you navigate your policy.

The Difference Between Flood and Water Damage

It’s essential to recognize that “flood” and “water damage” are not the same in the eyes of insurance. Most standard homeowners insurance policies cover certain types of water damage but typically exclude flood damage.

Water damage typically refers to sudden and accidental events, such as a burst pipe, an overflowing washing machine or a leaking roof after a storm. These incidents are often covered by homeowners insurance, provided they are not the result of neglect or lack of maintenance.

Flood damage is defined as water entering your home from outside due to rising water, such as heavy rain, storm surge or overflowing rivers. Flood damage is almost always excluded from standard homeowners policies and requires separate flood insurance.

Standard Exclusions to Watch For

While your policy may cover some water damage, there are standard exclusions you should be aware of:

• Flooding from natural disasters. As mentioned, this is not covered by standard homeowners insurance. You’ll need a separate flood insurance policy.
• Gradual leaks or seepage. Damage from slow leaks, seepage or long-term moisture buildup is usually excluded, as insurers consider these preventable with regular maintenance.
• Sewer or drain backups. Unless you have added specific coverage, water damage from sewer or drain backups is typically not included.
• Negligence. If the damage results from a lack of upkeep (such as failing to repair a known leak), your claim may be denied.

How We Help North Carolina Homeowners

Our team at The Austin Agency is committed to helping you understand your coverage and fill any gaps that could leave you exposed. We can review your current policy, explain exclusions and help you determine if flood insurance or additional endorsements are right for your situation.

If you have questions about your policy or would like to explore your options, please contact us today. We’re here to help you insure your home against water-related risks.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.