What is the difference between water damage and flood insurance?

What is the difference between water damage and flood insurance?

Water damage insurance typically covers damage from internal sources like burst pipes, while flood insurance covers damage from external sources like heavy rain or rising water.

So, if my basement floods from heavy rain, would that be covered by water damage insurance?

No, that would likely require flood insurance. Water damage insurance usually doesn't cover flooding from outside sources.

What if I have both types of insurance?

If you have both, then damage from internal sources would be covered by water damage insurance, and external flooding would be covered by flood insurance.

Are there any exclusions I should be aware of?

Yes, both types of insurance can have exclusions. For example, flood insurance may not cover certain types of structures or damage caused by neglect.