NJ Does Car Insurance Cover Flood Damage?

Yes, car insurance can cover water damage, specifically through comprehensive coverage. Here's a summary of how it works, based on information provided by Progressive Insurance:

1. Comprehensive Coverage:
  - Comprehensive coverage protects your vehicle against various types of damage, including water damage caused by flooding, heavy rains, hail, and storm-related incidents.
  - While comprehensive coverage is optional, lenders typically require it if you finance or lease your vehicle. It is also the only coverage on your auto policy that can safeguard your vehicle against weather-related issues.
  - A deductible applies, meaning you're responsible for a certain amount of the repair or replacement cost.
2. Flood Damage:
  - If your car is damaged or ruined due to flooding, comprehensive coverage may pay for the repair or replacement of your vehicle, minus the deductible.
  - Comprehensive coverage extends to various water damage scenarios, such as flooding, heavy rains, and hailstorms.
3. Other Storm Damage:
  - Comprehensive coverage also addresses other types of storm damage. For instance, if a falling branch damages your windshield or windows during a storm, or if hail causes dents, comprehensive coverage can cover the repair costs.
4. Coverage Limitations during Major Storms:
  - Insurance companies may impose "binding restrictions" during major storms, preventing policy changes or additions. Therefore, adding comprehensive coverage just before a storm hits may not be possible.
5. Driving through Flooded Areas:
  - If your car sustains damage from driving through a large puddle or flooded streets, comprehensive coverage may cover the repairs, minus the deductible.
6. Engine Damage:
  - Flooding can cause damage to your car's engine, electrical system, and transmission. If the engine gets submerged, comprehensive coverage may pay for repairs or replacement, minus the deductible.
7. Exclusions for Owner-Installed Electronics:
  - Owner-installed electronics, such as stereos, CB radios, GPS devices, etc., typically aren't covered against water damage. If the automaker didn't install the electronics, they may not be covered.
8. No Need for Flood Insurance for Vehicles:
  - Flood insurance policies, designed to protect homes and belongings, exclude damage to motor vehicles. Comprehensive coverage on your auto policy addresses flood-related damage to your vehicle.

In summary, adding comprehensive coverage to your auto policy is crucial for protecting your vehicle against water damage from various sources.

With flooding becoming a more common threat in Hunterdon County it would be a good idea to make sure you are covered, contact us at the Gansfuss Agency and we can help you review your coverage!