This Disaster Could Cost You More Than $100,000 -- and Your Homeowners Insurance Won't Cover It

Filing a homeowners insurance claim is stressful under the best of circumstances. Even when everything is covered, there's still a deductible to worry about, and life can be pretty disrupted until the repairs are complete. But it's a whole lot worse if the insurer denies the claim because the damages aren't actually covered under the policy terms.

People tend to think that homeowners insurance covers any major mishap with their home, but the truth is, it has some pretty significant gaps. And there's one that could cost more than $100,000. Here's what homeowners need to know to prepare themselves.

It's only a bit of water

Floods may not be as violent as hurricanes or tornadoes, but don't let that fool you. They can still cause massive amounts of damage in a short time. Just one inch of water in a 2,500-square-foot, one-story house can cause $72,162 in damages, according to the Federal Emergency Management Agency (FEMA). And four feet of water could push the damages over $103,000.

Floods can sweep away personal property, destroy appliances and fixtures, and even damage the foundations of homes. And because they're so expensive, even the best homeowners insurance companies don't cover them. Those interested in this protection must invest in a separate flood insurance policy.

What flood insurance covers

A flood insurance policy includes coverage for the home itself, including its:

• Electrical and plumbing systems
• Furnace and water heater
• Refrigerators, stoves, and other built-in appliances
• Permanently installed carpeting
• Permanently installed cabinets, paneling, and bookcases
• Window blinds
• Foundation walls, anchorage systems, and staircases
• Detached garages
• Fuel tanks, well water tanks and pumps, and solar energy equipment

It also covers personal property, including:

• Personal belongings, like clothing, furniture, and electronics
• Curtains
• Washer and dryer
• Portable and window air conditioners
• Microwaves
• Carpets not included in building coverage
• Valuable items such as original artwork and furs (up to $2,500)

But it doesn't cover everything. Homeowners will still have to pay for these things on their own:

• Temporary housing and additional living expenses incurred while the home is being repaired
• Property outside of the insured building, like landscaping, septic systems, decks and patios, fences, seawalls, hot tubs, and swimming pools
• Financial losses caused by business interruption
• Currency, stock certificates, precious metals, and other valuable papers
• Cars and most self-propelled vehicles, including their parts
• Personal property kept in basements

How to obtain flood insurance

Homeowners can purchase flood insurance through the National Flood Insurance Program (NFIP). Contact a flood insurance provider from the program's list to get started. Homeowners will need to call the insurer to get the ball rolling, since it's not possible to get flood insurance quotes online.

Those applying for a mortgage may be required to purchase flood insurance if their new home is in an area at high risk for flooding. They'll have to provide proof of insurance to the mortgage lender for the loan to be approved.

Costs will vary depending on the size and construction of the home and its location. Homeowners who live in low-lying or coastal areas will likely pay more than those who live farther inland on higher ground.

Homeowners who have any questions about their flood insurance's costs and coverage should contact the NFIP for more information. Keep in mind that all flood insurance policies have a 30-day grace period, so it's best not to wait. The sooner a homeowner purchases a policy, the sooner they'll be completely protected.