Home insurance companies are offering a new water endorsement for homes across the country.

In this article, we're going to talk about the dangers of using these water endorsements as a replacement for flood insurance. We're going to cover important things to know about these insurance products, and we're going to show you how you could lose your home if you have either of these insurance products.

Dangers of Using Water Endorsement For Your Flood Insurance

Water Endorsement Dangers

Now, it seems that this new water endorsement from your homeowner's insurance policy might be the best deal since it will help you avoid getting another policy just for flood damage. However, one of the biggest dangers of using this as a replacement for flood insurance is coverage.

Let's do a quick review first of what flood insurance offers for your protection against flood damage.

Flood Protection

First, let's define what flooding is. This is when at least 2 acres or 2 properties are inundated by water. This may be due to heavy rain, overflow of rivers or any body of water, or snowmelt. This is the same rule that flood insurance follows.

If you go through federal flood insurance and the National Flood Insurance Program (NFIP) under the Federal Emergency Management Agency (FEMA), you will be able to get at most $250,000 for building coverage with a maximum of $100,000 for contents or personal property inside that home.

Dangers of Using Water Endorsement For Your Flood Insurance

On the other hand, this water endorsement will generally cover ten to fifteen percent (10% - 15%) of what a standard flood policy offers. This means that you're only going to get around $20,000 to $30,000 for flood coverage.

Although it follows the same rules of what is considered a flood, since different homes have different prices, this may present some benefits or potential disadvantages. Depending on your insurance provider, this amount may have the same limits as your sewer or drainage backup up to the dwelling limit.

Dangers of Using Water Endorsement For Your Flood Insurance

As much as this water endorsement may be beneficial for you, it may not be able to really address the coverage needs you may have when it comes to flooding. Generally, this amount may not be able to fully cover the replacement costs of your home.

It's also important to note that, unlike flood insurance services, water endorsement won't be able to cover all of your property that's been affected by flooding. This is especially true if you're living on a property in a high-risk flood area or near a body of water where flooding can happen drastically in a short period of time. 

This coverage may only cover your basement and the first floor however anything past that might not be part of your coverage.

Get A Quote


You might be thinking of saving more of your money by canceling your flood insurance and using water endorsement as your flood protection. We generally discourage this since it also presents a danger when it comes to your insurance coverage.

Water endorsement availability also depends on your insurer as there may be insurance providers that don't have this type of additional coverage.

Flood Insurance Guru - Flood Risk Verification Tool

Generally, by doing this it may also mean that if your homeowner's insurance is nonrenewed, it will take your flood coverage with it. Once your homeowner's insurance is canceled or nonrenewed by your insurance company, you might not be able to get this water endorsement from a different insurance provider since it's basically embedded with the policy.

Dangers of Using Water Endorsement For Your Flood Insurance

This is a different case with flood insurance being a separate policy that won't really be impacted if such that situation happens.

This water coverage is not going to be easily acquired too. This is because your mortgage lender or bank will likely be the one to determine if the policy limits of this new water endorsement will be enough for your home. Simply put, if your bank will not accept this coverage, you might still need to get a separate flood insurance policy.

How Flood Insurance Helps

This new water endorsement may not really be able to give full coverage unlike a separate policy like flood insurance. So relying everything on your homeowner's policy may not be the best line of defense as a property owner for property damage due to floods.

Although it may be risky to rely your flood protection on water endorsements solely, it may also be of great help if you combine it with an existing flood insurance policy. This could mean that you can go past certain policy limits of flood insurance coverage by using water endorsement from your homeowner's insurance policy as excess flood insurance.

You may also find more comfort and security by knowing that you can get around $270,000 just for building coverage alone with the water endorsement and your standard flood policy coverages combined.

Dangers of Using Water Endorsement For Your Flood Insurance

At the end of the day, you shouldn't settle for less when it comes to the protection of your property and investment. Floods can happen anytime and most times, even just an inch of flood can cost thousands of dollars in property damage.

If you've got questions regarding this new endorsement with homeowners policies, how flood insurance premiums are determined, or anything related to flood insurance, click below to access our flood learning center.

Flood Insurance Guru - Flood Learning Center

Ready to solve your flood insurance problems? Here are the steps you can take:

  • Fill out this form — Get A Quote
  • Talk with our flood education specialist.
  • Get back to the important things in your life.

For this one, let's dive into a little bit of storytime on my experiences looking and buying a new home for me and my family, and also discuss some important lessons on getting insurance as an independent agent.

The Flood Insurance Guru | Blog | What Happens When The Insurance Agent Becomes The Customer?

Now, it's pretty obvious that as an insurance agent myself, I've been through a lot of training, met a lot of clients, handled a lot of commissions, and provided care for anyone who comes to me. You'd assume that since I've been in the insurance industry for fifteen years means that I can basically manage my own insurance, right?

Well, not necessarily. I think it's important to mention that generally my knowledge on insurance is mastered towards flood insurance — hence Flood Insurance Guru — so this doesn't mean that I have full confidence that I can just handle all my insurance policies. There's a huge difference between homeowners insurance, life insurance, health insurance, and auto insurance, so you shouldn't really be confident to go over such things on your own.

The Flood Insurance Guru | Blog | What Happens When The Insurance Agent Becomes The Customer?

I may have a lot of experience in home insurance and auto insurance, but that was really from several years back and a lot of things change on this. Since I don't deal with this type of insurance anymore, there's a lot of things I really don't know. This is the reason why I always go to a local expert insurance agency or agent even when it comes to home insurance.

I could write it if I want, but I don't want to because I'm not really that knowledgeable anymore on the best possible insurance policy and insurance company for me. Since they have more training than I do on home insurance or auto insurance, more experience in handling clients and customers on these types of insurance, and generally since they're most likely connected to insurance companies and can get more resources, I can get the best deal

The Flood Insurance Guru | Blog | What Happens When The Insurance Agent Becomes The Customer?

What about flood insurance? I hear you asking.

Well, even when I pick a house that isn't in a high-risk flood zone, I still get that flood policy because of how crazy close it is from high-risk areas. Here's a quick flood education tip, when you buy a new house in a low-risk flood zone, you should still purchase flood insurance as protection from flood damage especially if you're close to a high-risk flood zone. Why? Well, flood water can redirect to low-risk zones given some circumstances, and like I always say, low-risk flood zones don't mean no-risk flood zones.

The Flood Insurance Guru | Blog | What Happens When The Insurance Agent Becomes The Customer?

Even as a professional, you still want to get that second opinion when you purchase insurance whether if it's for your home, your business, or if you're helping a friend. These types of insurance have different policy jackets and policy exclusions. You may learn a thing or two as well on additional coverages that you might miss if you write these things on your own. Having a valued and experienced agent help you can really save you from a bad deal.

The Flood Insurance Guru | Blog | What Happens When The Insurance Agent Becomes The Customer?

We've seen a lot of customers go online, set their insurance policies on their own, and loss occurs. The one thing they regret is not consulting with a local agent who has the proper training for that specific insurance product that they got. This is why it's important that you always have a wide range and team of local agents who really know their craft, not just on insurance sales, but insurance laws and insurance coverage. You'd be surprised to see how much they can help your growth and protection from any kind of loss.

That's it for our little storytime of when an insurance agent becomes the customer.

If you have questions on flood insurance for your business, commercial insurance on flood policies, insurance organizations you can go to, and insurance application for flood policy, reach out to us.

Remember, we have an educational background in flood mitigation here in the Flood Insurance Guru and we want to share this knowledge with you. You too can be prepared for when crap happens. I hope you're having a great day.

The Flood Insurance Guru | 2054514294   The Flood Insurance Guru | Chris Greene | YouTube      Get Your Quote from Flood Insurance Guru



Everyday we hear from mortgage companies that are requiring flood insurance. It's not uncommon in fact it's required for anyone that has a loan through a federally backed mortgage and is in a special flood area?

So what exactly is a special flood area?

When we are talking about special flood areas. We are talking about areas that fall within the 100 year flood zone. This includes zones that begin with A and V.

So we know mortgage companies can require flood insurance, but what about home insurance companies?

Yes you heard that right.

Can home insurance companies require flood insurance?




Many home insurance carriers will not insure a home unless it has flood insurance on it.

This requirement generally applies to properties in the special flood hazard area.

Some home insurance companies will require you to put the home and flood insurance together in a special flood hazard area.

You want to be cautious here because it could cost you significantly on premiums.

If it is a National Flood Insurance Program Policy then the rates should be the same no matter where you go. However if it is a private flood insurance policy rates could be significantly different.

Recently we had a customer come to us that was being required to put the home and flood insurance together. This particular home insurance company only went through the National Flood Insurance Program for their flood insurance.

This was going to cost the customer a savings of $2500 a year on flood insurance simply to save $50 a year on home insurance.

So when you are looking at home insurance options you want to make sure you get these questions answered before signing up with a new policy.

So if you have questions about if it is beneficial to keep your home and flood insurance together, then click here. You can also check out our knowledge base article system here or our Youtube channel.

Remember we have an educational background in flood mitigation. This means we are here to help you understand your flood risks, flood insurance, and mitigating your property long term.

Contact Us