Flood vs. Earthquake Insurance: What’s Typically Not Covered?
Most homeowners assume that if disaster strikes, their insurance will cover it. Unfortunately, two of the most financially devastating events—floods and earthquakes—are usually not included in a standard homeowners policy.
Knowing what’s excluded and how to fill the gaps can be the difference between a fast recovery and years of financial struggle.
Flood Insurance
Flood damage is generally excluded from homeowners insurance. That means water from heavy rain, overflowing rivers, melting snow, or storm surge is not covered unless you have a separate flood policy.
-
Where to get it: The National Flood Insurance Program (NFIP) or private insurers.
-
Why it matters: Just one inch of water in your home can cause $25,000 or more in damage.
-
Misconception: You don’t have to live in a flood zone to need coverage—about 20% of flood claims come from areas with low or moderate risk.
Earthquake Insurance
Earthquake damage is also typically excluded. Even minor quakes can crack foundations, damage plumbing, or shift your home off its base.
-
Where to get it: Endorsements from your current insurer or separate earthquake policies.
-
Key detail: Earthquake deductibles are often a percentage of your home’s insured value, not a flat amount.
What’s Not Covered Even With These Policies
Both flood and earthquake insurance have exclusions. For example:
-
Flood insurance won’t cover landscaping, decks, or currency.
-
Earthquake insurance may exclude damage from flooding caused by quake-related dam failures.
Action Steps
-
Ask your agent for a risk assessment based on your location.
-
Get quotes for separate flood and earthquake coverage.
-
Understand deductibles and exclusions before buying.
Bottom Line: Don’t wait until the ground shakes or the water rises. If your standard policy doesn’t cover it, consider filling the gap now.
