Most homeowners, renters and business policies do not cover flooding
Homeowners insurance for water damage is generally limited to problems like burst pipes, not an inundation of water on the ground. Many homeowners believe they are already covered for flood damage by their homeowners policy. But a standard homeowners insurance policy will not cover flood damage. The average payout on a flood claim is $52,000 according to the most recent data from FEMA.
Flood Insurance is an extra Policy
A flood insurance policy covers your house and your belongings for flood-related damage from problems like hurricanes and torrential rain. You can buy flood insurance from the National Flood Insurance Program, and as an extra policy thru your homeowners insurance company. NFIP has a 30-day waiting period before coverage goes into effect, so you will not be able to make a flood insurance claim for damage that occurred during the waiting period. Some insurance companies have a shorter or no waiting period.
Do I live at the bottom of a hill?
Too many homeowners don’t think they need flood insurance. Only 5-15% have it. But 99% of counties in the U.S. are impacted by flooding. In some cases, you may be required to have flood insurance. For example, if you own a home or business and have a government-backed mortgage, you’ll be required to have flood insurance if you live in a high-risk flood area". - Jason Metz, editor, has worked for insurance industries since 2007.