What is flood insurance?

Flood insurance is specifically designed to provide coverage for damages that result from flooding, which is often not included in standard homeowners insurance policies. This type of insurance is crucial because flooding can cause significant destruction to property and belongings, and most standard homeowners policies exclude flood damage.

Having a separate policy dedicated to flood-related damages allows homeowners to protect their assets effectively. It is predominantly managed through the National Flood Insurance Program (NFIP) in the United States, which provides resources and standardized coverage for those at risk of flooding.

The importance of flood insurance lies in its targeted focus on this specific type of disaster, distinct from general water damage or other perils covered by broader insurance policies, thus making it essential for homeowners, especially in flood-prone areas.