What type of insurance covers flood damage?

Flood insurance provides coverage specifically for damage caused by flooding, which is generally not included in standard homeowners or property insurance policies. This type of insurance is particularly important in flood-prone areas where the risk of water damage due to heavy rain, storm surges, or rapid snowmelt is higher.

Homeowners insurance typically covers many perils, such as fire and theft, but it excludes flood damage, requiring homeowners to obtain a separate flood insurance policy if they wish to protect themselves against this risk. Comprehensive insurance refers to a type of auto insurance that covers non-collision incidents, which does not relate to property damage from floods. Earthquake insurance, similarly, is specific to damage resulting from seismic activity and does not cover flood-related incidents.

Flood insurance is often obtained through the National Flood Insurance Program (NFIP) and is essential for certain homeowners to ensure they receive compensation for losses associated with flooding. This highlights the distinct nature of flood-related risks and the necessity for a dedicated insurance product to address those risks.