Colorado Homeowner’s Insurance: Do I Need Flood Insurance?

by Cindy Chase

We are in the midst of a very wet spring.  The last few weeks may have caused you to wonder what type of water damage is covered by your Colorado homeowner’s insurance policy.  And, do you need a flood policy?  You may also be wondering if you live in a flood plain…how do you find out?

Colorado Homeowners Insurance

What is the Difference between Flood Damage and Water Damage?

The first place to start is to understand the difference between flood damage and water damage.

Flood damage is defined as water that has been on the ground at some point before it does damage to your home.

Water damage is the opposite.  It is defined as damage done to your home by water before the water comes into contact with the ground.

Examples of flood damage may include:

  • A nearby river overflows its banks and washes into your home.
  • Surface water caused by a heavy rain seeps into your basement because the soil can’t absorb the water quickly enough.
  • A heavy rain or flash flood causes the hill behind your house to collapse into a mud slide that oozes into your home.

Examples of water damage may include:

  • A hailstorm smashes your window, permitting hail and rain-free access to your home.
  • A heavy rain soaks through the roof, allowing water to drip through your attic or ceiling.
  • A broken water pipe spews water in your home.

Many homeowners mistakenly believe their homeowner’s insurance policy covers flood damage. It doesn’t. Up to 75 percent of the buildings in the U.S. located in areas with a high risk of flooding are not covered by flood insurance.

From Rocky Mountain Insurance Information Association

What Does Your Colorado Homeowner’s
Insurance Policy Cover?

Take note: Your homeowner’s policy does not provide coverage for flood damage.  The only way to insure your home against a flood is with a flood insurance policy — no other insurance will cover flood damage.

A homeowner’s insurance policy does provide coverage for many types of water damage to your home.

But not all policies are created equal. Insurance carriers offer different coverage options, so it’s important to take the time to understand what types of water damage your homeowner’s policy covers.

If you’re not sure, please call us. We welcome an opportunity to explain your current policy and assist you in making any changes that fit your needs.

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