Flood Insurance
Definition
A separate insurance policy that covers damage from flooding — surface water entering your home from outside. Standard homeowners and renters policies exclude flood damage. Flood insurance is available through the National Flood Insurance Program (NFIP) or private insurers. It is required by mortgage lenders for properties in high-risk flood zones.
When This Matters
Heavy rainfall causes a nearby river to overflow, flooding your first floor. Your homeowners policy excludes this. Your separate flood insurance policy covers the damage.
Related Terms
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