There are some distinct difference between water backup coverage and flood insurance.
Southeast Michigan was hit was a huge rainstorm in August 2014. It was declared a disaster by the Governor and a request for assistance from FEMA was granted. Water in you basement is never a good thing but how it got there makes all the difference when it comes to coverage. Flood insurance or water backup
If water comes up through your drains or overflows from your sump pump well you need to have an endorsement on your Homeowners policy to get cover. Normally excluded from a standard homeowners policy form there is a specific water backup endorsement or it is included in a package endorsement. There is normally a range of coverage options from $5,000 to $50,000 depending on the company. If you have a finished basement or store items in your basement you should consider water backup endorsement. A backup sump pump is also something to consider because if the storm is bad enough to produce a lot of rain it might knock out power to your sump pump. There is battery backup and water pressure powered units. Here is a link to a comparison of the two. Do research to see what fits your situation best.
A flood policy has one specific coverage that is covered. Flood. The national flood insurance program is the federally back program that writes flood insurance.
According to FEMA: A flood is (1) “A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from a. overflow of inland or tidal waters; b. unusual and rapid accumulation or runoff of surface waters from any source; or c. mudflow. Flood waters must enter your house through a door or window not through your drains or sump pump well. Flood insurance is very limited in coverage for contents in your basement. You can get more information at www.floodsmart.gov .
There has been a lot of changes to the flood program the last few years. We have taken the time to learn the changes and pride ourselves on helping customer minimize their flood insurance cost. Contact us if you have any questions or if your mortgage tells you flood insurance is required.