What is Flood Insurance?

Flooding is defined by the National Flood Insurance Program as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties (at least one of which is your property from) overflow of inland waters, unusual and rapid accumulation or runoff of surface waters from ANY SOURCE, and mudflows.

This can be brought on by landslides, a hurricane, earthquakes, or other natural disasters that influence flooding, but while a homeowner may, for example, have earthquake coverage, that coverage may not cover floods as a result of earthquakes.

Flood damage is covered under the comprehensive portion of an auto insurance policy, but "flood insurance" is available from the federal government under the National Flood Insurance Program. It is sold by licensed insurance agents. Flood damage is typically excluded under homeowners and rental policies and many commercial property policies.  Flood insurance protects homeowners and renters against losses from a flood.   If a home is located in a flood plain, the lender will require flood insurance before approving a loan.  To determine risk factors for specific properties, insurers will often refer to topographical maps that denote lowlands and floodplains that are susceptible to flooding

You will need flood insurance if you live in a designated flood zone.  But flooding can also occur in inland areas and away from major rivers.  Consider buying a flood insurance policy if your house could be flooded by melting snow, an overflowing creek or pond or water running down a steep hill.  Don't wait for a flood season warning on the evening news to buy a policy, because there is a 30-day waiting period before the coverage takes effect.