What is Flood Insurance?

Unlike a standard homeowner's insurance policy, flood insurance covers losses to your property caused by flooding. Some of the things a standard flood insurance policy will cover include:

• structural damage
• furnace, water heater and air conditioner
• flood debris clean up
• floor surfaces such as carpeting and tile.

You can also buy a flood insurance policy to cover the contents of your home, such as furniture, collectibles, clothing, jewelry and artwork.

Policies are available in three forms: Dwelling (most homes), General Property (apartments and businesses), and Residential Condominium Building Association (condominiums).

It is important to know that if you have a federally backed mortgage on a home located in a high-risk area, federal law requires you to purchase flood insurance. Also, if you've received a federal grant for previous flood losses, you must have a flood policy to qualify for future aid.

The Standard Flood Insurance Policy
The Preferred Risk Policy