Flood insurance

Facts about Flood Insurance

Flood insurance is generally recommended for people who live or own property in a flood zone. In some instances, people are required to get this coverage before the can rent a property or get a mortgage. But even if a person isn’t in a flood zone, they can still possibly get flood coverage.

What’s Covered

Flood insurance covers floods caused by natural disasters. For instance, if a toilet overflows and floods the home, that doesn’t count as a flood. But if a nearby creek overflows and affects an entire neighborhood, then that’s considered a flood. Coverage will pay for damages that occur because of the flood. This includes damage to the structure and damage to items inside the home. Items such as clothing, appliances, and electronics are often covered.

A policy may or may not cover items that were kept in a vulnerable location. For example, an insurer might not cover an expensive artwork that was stored in a basement. The insurer might say it wasn’t properly stored to protect it from floods.

How a Flood Policy Works

The policyholder pays a monthly premium to keep the policy active. There is also a deductible due before the insurance does its part. But after that, if the claim is approved, then the insurer will provide financial assistance.


Having flood insurance is helpful for anyone who lives or owns property in a flood zone. Floods can ruin property and cause severe damage. Flood insurance makes it easier for a policyholder to recover from a devastating flood.