What is flood insurance designed to cover?

Flood insurance is specifically designed to cover damages caused by flooding, which are typically not included in standard homeowners or property insurance policies. Standard policies usually exclude coverage for flood-related damages, meaning that if a property is affected by a flood, the owner may not have compensation for the damage to their home or belongings unless they have a specific flood insurance policy in place.

This insurance covers physical damage to buildings and the contents within them resulting from floodwaters, which can include basement flooding, overflow of water, and other related incidents. The focus of flood insurance is on events that are categorized as floods, which are officially defined in policy terms, rather than general water damage from various other sources like plumbing issues or severe weather that doesn't classify as a flood.

Understanding the specifics of what flood insurance covers is crucial, especially in areas prone to flooding risks, allowing homeowners to safeguard their properties against significant financial losses that typical insurance wouldn't cover.