Flood Damage vs. Water Damage: Understanding Your Insurance Coverage

According to FEMA, one inch of floodwater can cause up to $25,000 in damage. Yet, more than 70% of homeowners in flood-prone areas don't have flood insurance. Many only find out they’re not covered when it’s too late.

Water invading your home can be devastating! But not all water-related damage is treated the same by your insurance provider. 

One of the most common and costly misunderstandings homeowners face is the difference between flood damage and water damage. 

At LocalRestorePro, we’ve seen how confusing this distinction can be when it matters most during a crisis. 

The below guide will help you understand: 

1. Your coverage

2. The claims process

3. How to protect your home and finances.

   
   

What’s the Difference between Flood Damage & Water Damage?

This distinction matters because standard homeowners insurance policies typically do NOT cover flood damage, while many do cover sudden water damage.

What to Do When Water Damage Occurs

Step-by-Step Process:

1. Stop the Source (if possible)Shut off your main water valve if it’s a plumbing issue. Avoid entering flooded areas with electrical appliances.

2. Document EverythingTake photos and videos of all damage before starting cleanup. This is vital for insurance claims.

3. Contact Your Insurance ProviderReport the incident immediately. Ask specifically whether it’s considered “flood damage” or “water damage” under your policy.

4. Mitigate Further DamageMost policies require you to take reasonable steps to prevent more damage. This may include removing wet carpets or using fans and dehumidifiers.

5. Call a Certified Restoration CompanyLocalRestorePro is IICRC-certified and experienced in both flood and water damage restoration. We also help you navigate the claims process.

Dealing With Insurance: Key Tips

• Review Your Policy Annually: Understand what is and isn’t covered. Flood insurance must be purchased separately, often through FEMA’s National Flood Insurance Program (NFIP).

• Keep Records: Maintain receipts of repairs, contractor estimates, and communication with your insurer.

• Don’t Settle Too Quickly: Ensure all damages are inspected and documented before accepting a payout.

Protect Your Home Before It Happens

• Install a sump pump and backflow valves

• Maintain gutters and grade landscaping away from the foundation

• Consider smart water sensors for early leak detection

Don't wait until it’s too late. If you've recently experienced water-related damage or want a professional inspection to protect your home, we're here to help. Sign Up here for our consultation.

Fill out the form below to get a FREE Damage Assessment and Consultation from LocalRestorePro today.