What is the difference between a flood damage and a water damage?
Flooding refers to a large reservoir of water around a house or building, or when the ground cannot support the excess water. At this point, the water will enter a house or building and cause damage. This is known as flood damage.
On the other hand, water damage is usually caused by internal problems in a home or building, including but not limited to toilet overflows, broken pipes, leaking water heaters, broken sprinkler heads, etc.
The difference between flood and water damage to home and business owners is who is responsible, financially and legally.
Financially, your damage will potentially fall to your insurance company or the Federal Emergency Management Association (FEMA).
FEMA covers homes and buildings in states that are in a “flood zone,” or if the flood is in an area that is in a state of emergency. However, you should always contact FEMA directly and never assume damage will be covered; As with all government programs, rules can change based on individual circumstances, and policies differ from state to state.
Insurance companies have a policy, which is basically a contract, with the home or business owner that states what will and will not be covered. Insurance companies typically cover water damage when the home or business owner failed to prevent the hazard.
Unfortunately, many policyholders are surprised to learn that their claim has been denied when they suffer flood damage. They discover that the insurance company deemed the damage to be the result of a “maintenance issue” (whatever the owner could control). Most home and business owners don’t even know there are maintenance issues required by their policy. According to the insurance industry, home and building owners are supposed to inspect foundations and windows for potential losses from leaks and flooding.
The most important thing you can do is to carefully review your insurance policy so that you are not caught off guard by any type of damage that may occur! Also, if you discover any type of water in your home or business, contact a restoration company immediately! The faster the water is removed, the less damage and expense you will incur.
As you have read, flood damage and water damage are actually two different situations. They make them look or feel the same, but depending on who pays, they actually have a very different definition. If you have a water problem in your home or business, make sure you understand the situation before you begin.