Water Damage vs Flood Damage: What's the Difference?

'Water damage' and 'flood damage' sound similar, but insurance treats them very differently. If you're in Baltimore and dealing with either, the distinction could affect whether you're covered at all.

What Counts as Water Damage

In insurance terms, water damage is usually water that originates inside your home or from the plumbing system. Examples:

• Burst pipes
• Appliance leaks
• Overflowing sinks, tubs, or toilets
• Roof leaks from storm damage (often covered)
• Water damage from fighting a fire

Standard homeowners insurance generally covers these when they're sudden and accidental.

What Counts as Flood Damage

Flood damage is water that comes from outside and affects two or more properties or a large land area. Examples:

• River or stream overflow
• Storm surge and coastal flooding
• Heavy surface runoff during storms
• Mudflow from saturated ground

Flood damage is almost never covered by standard homeowners insurance. You need a separate flood insurance policy through NFIP or a private carrier.

The Gray Areas

Sewer Backups

Not usually covered by standard homeowners or flood policies. Requires a specific sewer backup endorsement.

Sump Pump Failure

Only covered if you've added a water backup or sump pump endorsement to your policy.

Wind-Driven Rain

Generally covered under homeowners insurance if wind damage allowed the water in. Coverage gets complicated when wind and rain damage can't be separated.