What Is Flood Insurance?

Flood insurance is a type of property insurance that covers homes or dwellings from water damage caused by natural events like flooding rivers or storm surges. Standard homeowners’ insurance policies do not cover flood damage. The National Flood Insurance Program (NFIP) is a federal program aimed at making flood insurance more affordable to those who need it most, particularly those living in high-risk areas. Homeowners in flood-prone regions need flood insurance, and even those living outside floodplains may benefit from flood insurance. Flood insurance policies are generally affordable, with prices based on the likelihood of the property to suffer from a major flood.