When people talk about flood damage, the focus is typically on buildings, and understandably so. Waterlogged basements, ruined flooring, and the risk of mold are costly repairs that no property owner wants to deal with. But what often gets overlooked is car damage. When a vehicle is flooded, the first question on a car owner’s mind is typically: “Does car insurance cover flood damage?”
Yes, car insurance can cover flood damage - if you have the right policy. Let’s break it down.
What Type of Car Insurance Covers Flood Damage?
Many car owners are surprised to find out that their standard auto insurance policy doesn’t cover flood damage, or that their homeowners or tenant insurance does not include coverage for their vehicle. It’s a common misconception that basic liability or collision coverage is enough, but only comprehensive coverage protects your vehicle from natural disasters like floods.
Comprehensive insurance is optional (unless required by your lender). It is designed to cover damage to your vehicle from non-collision-related incidents, like theft, vandalism, fire, falling trees, and yes, natural disasters such as floods.
Whether it’s during your morning commute, parked in an underground garage, or sitting outside your home, flood damage to your vehicle can happen fast, and the consequences can be severe. To understand how coverage applies in real-life situations, let’s break down three of the most common scenarios where cars get flooded and what your insurance may or may not cover.
1. Flooded Vehicle on the Road
If you’re driving and suddenly hit deep water that stalls or damages your engine, your first thought might be: Does car insurance cover flood damage? This type of water damage is typically covered by comprehensive insurance, not collision, unless the damage happened as a result of hitting something (like another vehicle or object).
Trying to drive through a flooded road can result in a hydrostatic lock, where water enters the engine. Repairs for this can be expensive, but again, comprehensive coverage generally has you protected.
- Pro Tip - If floodwaters rise while you're stopped in traffic or parked on the roadside, your claim should still be eligible under comprehensive coverage.
2. Car Flooded in a Parking Garage
Underground or ground-level parking garages are especially vulnerable during flash floods or heavy rains. If your vehicle is parked and a storm causes water to rise and damage your car:
- Comprehensive insurance would typically cover water damage to the vehicle, including the interior, electrical system, and engine, if submerged.
- If the garage owner is found to be negligent in any way (for example, faulty drainage or ignored warnings), there may be additional options for compensation, but that's typically handled separately and can take time.
3. Car Flooded at Home
If your car is parked in your driveway, garage, or street and is damaged due to a nearby river overflowing or heavy rain flooding your neighborhood, comprehensive insurance still applies.
- It’s worth noting that even if you have homeowner’s or renter’s insurance, flood damage to your vehicle is never covered by those policies. You need the correct car insurance for flooding.
What If You Don't Have Comprehensive Car Insurance Coverage?
Unfortunately, without comprehensive coverage, you’re on your own for the repair or replacement costs. And flood damage can total a car, especially if water gets into the engine, electronics, or interior. In many cases, the cost of repairs is higher than the value of the car, and insurers may declare the vehicle a total loss.
Failing to add comprehensive coverage can be a costly oversight, especially if you live in an area prone to heavy rain, hurricanes, or flash flooding. Even if you’ve never experienced a flood before, weather patterns are shifting, and inland areas are now experiencing more flood events.
Why Property Owners Are Turning to Flood Barriers
Installing flood barriers is one of the most effective steps you can take to reduce flood damage. It’s a proactive solution that demonstrates your commitment to safety and flood preparation, both to all who use the building and your insurance provider.
Here’s what flood barriers can do for your property:
- Reduce your risk profile with insurance providers
- Potentially lower your insurance premiums over time
- Help you avoid costly claims and rate hikes
- Greater trust and peace of mind with tenants and guests
- Prevent business disruption and downtime
- Quicker recovery and minimal damage
- Increase in property value and market appeal
In Summary
Flooding can cause serious and costly damage to your vehicle, whether it’s parked in your driveway, an underground garage, or caught on the road during a storm. Yet, many drivers don’t realize that standard auto insurance policies don’t cover flood damage.
To ensure your car is protected:
- Add comprehensive coverage to your auto policy
- Understand what’s covered in different flood scenarios
- Avoid the costly mistake of assuming flood damage is automatically included
- Act quickly after a flood to prevent further damage and start the claims process
Floods are becoming more frequent and less predictable. Making sure your insurance policy includes comprehensive coverage is one of the smartest steps you can take to protect your vehicle so that when the next storm hits, you’re not left wondering, “Does car insurance cover flood damage?” Instead, you can be confident that your car insurance policy has the right coverage.
For more information about how you can prevent flood damage to your parking garage, commercial building, or home, contact our flood experts today.