An often overlooked exclusion from a homeowner’s or business owner's insurance policy is coverage for flood. Floods occur most commonly when water from heavy rainfall, melting ice and snow, or any combination of these exceeds the carrying capacity of the streams, river system, lake, or ocean into which it runs. The overflow of inland or tidal waters, unusual rapid accumulation or runoff of surface waters from any source (also known as a flash flood), or mudflow are common causes of flood. To be deemed a flood two or more acres of normally dry land or two or more properties must be affected.

Most flood insurance is written through the National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Agency (FEMA). Insurance agents and carriers enrolled in the NFIP Direct Program can write and service flood insurance policies directly through the federal government.

Government created programs will cover losses of a building up to $250,000; for personal property or goods the coverage is limited to $100,000. If property values exceed these amounts you must have insurance through a private company.

Not being in a flood zone does not mean you are not susceptible to a flash flood or mudslide. Pricing on flood policies will vary depending on the rating of zone of the property. Anyone can obtain flood insurance regardless of where you live.