If it were a flood by any other name, would it be as wet? Oh the invocation of Shakespeare. In my experience a person’s feelings about Shakespeare fall somewhere on the spectrum of dazed at the romance of a sonnet and an iambic pentameter nightmare. So, too, can the discussion of property insurance be. Recently, confusion has cried havoc over the difference between a natural flood and a flood inside a home or condominium unit.

Shall I compare thee to a winter storm? For most people a flood is what they have seen in the news. They consist of fast-moving, wide breadths of brown water, overwhelming levees and filling neighborhoods up to rooftops. But does not a burst pipe flood my home? And therein lies the rub. The common conception is to use the word “flood” as a noun and a verb.

Insurance policies work by identifying events that could damage property. We call these events perils, and they are specifically defined terms – nouns. For example, a fire, wind, hail…flood. And how do we define a flood? The Federal Emergency Management Association (FEMA) defines a flood as:

“A general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area or 2 or more properties…from overflow of inland or tidal waters, unusual and rapid accumulation or runoff of surface waters from any source, or mudflow.”

Insurance is purchased to protect a property owner against the cost of repair after a flood. All properties are located in a FEMA Special Flood Hazard Area (SFHA). However, property owners are only required to purchase flood insurance if the property is located in certain SFHAs.

In contrast, if a pipe bursts in my home, a room or more may be flooded. But that is using flood as a verb. The actual peril (the noun) is the damage caused by the water that escapes a burst pipe. Coverage for this exposure, this peril, is included in most every property insurance policy sold on the market today.

When you have water damage, think about the source. If the water came from a natural source outside, you probably have a flood to deal with. If it came from a pipe, you must with the burst pipe recon.

“O, had I but followed the arts.”