|Flood coverage is a frequently misunderstood area of insurance protection. These are the facts:
Flood coverage is specifically excluded by all homeowner policies. A separate flood insurance policy is necessary.
Congress established the National Flood Insurance Program (NFIP) in 1968 to give property owners the opportunity to purchase insurance to cover flood losses, coverage that was previously too costly for private insurers to offer. All flood insurance is backed by the U.S. government.
Flood insurance is catastrophic insurance only. It provides assistance in the case of a natural disaster and is not intended to bring your home and its contents back to pre-flood condition. Most residential buildings can only receive up to $250,000 in coverage ($500,000 for non-residential buildings). Coverage for contents of homes is limited to $100,000 ($500,000 for non-residential locations).