A client asks if flooding from a nearby river is covered under their homeowners policy. What should the agent or adjuster explain?

Flood exclusion: Standard homeowners and commercial property policies EXCLUDE flood damage.

Definition: Flood includes: Surface water inundation from any source (rivers, lakes, oceans, ponds); Mudslides caused by accumulating water; Overflow of inland or tidal waters; NFIP (National Flood Insurance Program): Federal program providing flood insurance through approved private insurers; required for properties in Special Flood Hazard Areas (SFHAs) with federally-backed mortgages; available to all properties in participating communities.

Limits: NFIP residential: $250,000 dwelling / $100,000 contents.

Private flood: Higher limits available; may cover additional living expenses not in NFIP.

Adjuster consideration: When handling a water damage claim, distinguish between: covered water intrusion (burst pipe, appliance failure) and excluded flood (surface water from outside); documentation of the water's origin is essential.