Flooding, Rains, Melting Snow: What Does Flood Insurance Cover?

March 11, 2024

Flood insurance is specifically tailored to shield the property, its framework, and stored possessions from dwelling-specific losses and destruction inflicted by flooding, rains, melting snow, clogged drain lines, and others. The cost depends on the property type, dimensions, area, and other factors.

Flood insurance provides financial support to the policyholder in the event of property loss due to flooding. The cost associated with this type of policy often depends on the location. Insurance companies use topographical maps to determine which areas will likely experience heavy flooding. These maps show areas that are floodways and lowlands, which helps to see if a location is prone to floods.

What Does Flood Insurance Cover?

Many homeowners do not realize they need flood insurance, assuming flood damage is included in a traditional home insurance policy. The truth is that flood insurance is separate.


Source: InsureU

About 27% of people in the U.S. own homes at risk for flood damage and have insurance for floods. The low number is probably because the homeowners don’t realize they need separate flood coverage.

A traditional home insurance policy relies on the economic principle of large numbers to charge policyholders small amounts of money. The money is for paying claims of policyholders who suffer damage or loss. The number of people making claims is generally small compared to other insurance types. However, with flood insurance, the number of people making claims outnumbers those who want flood protection.


In most cases, insurance companies don’t project making a significant profit by providing flood damage coverage. If that’s the case, the homeowner must look elsewhere for flood insurance.

In parts of the U.S. prone to floods, the federal government requires insurance that protects against flood damage. This requirement is for the security of FHA and VA mortgage loans.

Determining Eligibility For Flood Insurance

If your home is not located in a floodplain or flood zone, there is no point in buying flood insurance. If none of the nearby homes have ever flooded, yours will unlikely be the first.


However, people with a home mortgage should buy a separate flood insurance policy. A private primary flood insurance company can help, but it must also be a National Flood Insurance Program distributor.

Wrapping Up

Whether or not buying flood insurance is the right choice will rely solely on several factors, the most important of which is whether your property is in a flood-prone area. Floods, on the other hand, can happen anywhere where it rains.

The bottom line is you don’t have to live close to a river for your home to flood due to melting snow or clogged sewer lines. Remember that if you want to be covered for flood damage, you’ll have to purchase a separate policy as an addition to your homeowners insurance.

Victoria Berezhetska

Victoria Berezhetska is a Content Lead at Phonexa.com and an expert contributor to CoverExplore. She has a Bachelor of Science degree in Business Administration, with extensive working experience as a PR specialist and content writer. At CoverExplore, she helps customers find the right educational material through easily digestible blog posts and buying guides backing their insurance coverage choice. Victoria covers diverse topics around digital and insurance marketing, including auto, home, health, and life insurance.

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