What is flood insurance designed to cover?

Flood insurance is specifically designed to cover losses resulting from flooding. This type of insurance provides financial protection for homeowners, renters, and businesses against the various damages that can occur when water inundates land that is normally dry. It typically covers damage to the building structure, its foundation, and personal property within the structure as a direct result of flooding caused by natural disasters such as heavy rainfall, storm surges, or melting snow.

The focus of flood insurance is distinct from other types of insurance that cover different types of catastrophic events. For instance, earthquake damages, fire damage, and theft are covered under separate policies or specific endorsements, and would not fall under the category of flood insurance. As such, understanding the scope of coverage for flood insurance is crucial for property owners in flood-prone areas to ensure adequate protection.