What Is Flood Insurance?How Flood Insurance WorksThe National Flood Insurance ProgramThe Cost of Flood InsuranceWhen Is Flood Insurance Required?What is the National Flood Insurance Program (NFI?Is Flood Damage Covered by Home Insurance Policies?The Bottom LineA type of catastrophe insurance, a flood insurance policy is different than the basic hazard insur…Standard homeowners insurance covers interior water damage, due to factors like storms or burst pipes. However, it generally doesn't cover destruction or damage caused by floodwaters. Property owners who live in an area prone to floods usually need to get special insurance.Flood insurance basically works like other insurance products. The insured (the property owner) …If the property or its contents are damaged or destroyed by flooding caused by an external event like rain, snow, storms, collapsed or failed infrastructure, the homeowner is covered. They receive cash for the amount of money required to repair the damage and/or rebuild the structure, up to t…See more on investopedia.com
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Published: May 14, 2010
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