What is Flood Insurance used for?

Flood insurance is specifically designed to cover physical damage to properties that result from flooding events. Floods can occur due to various reasons, such as heavy rainfall, storm surges from hurricanes, or the overflow of rivers and lakes. This type of insurance provides financial protection for homeowners, renters, and businesses by covering damages that are not typically included in standard homeowners' insurance policies.

The policy assists in the repair or replacement of a structure and its contents when they are affected by floodwaters. It is a crucial financial tool for anyone living in flood-prone areas and is often a requirement for properties secured by mortgages in such zones. This insurance helps policyholders recover from one of the most common natural disasters by compensating for the losses and enabling them to return to normalcy after flooding occurs.