Flood insurance is provided by an insurance company. When your property suffers flood damage, then the insurance company provides financial assistance. It’s important to know that homeowners insurance doesn’t include flood coverage. Most people think it does, but it doesn’t. You need to specifically purchase flood insurance for your property.
It’s not necessary that you live on a floodplain to get this insurance. However, if you do live in an area prone to flooding, then it’s recommended that you get this coverage. If you live in an area that participates in the National Flood Insurance Program (NFIP), then you can get flood insurance. Renters can also get coverage for their belongings. If you have a mortgage, then you might also be required to have flood coverage. Keep in mind that there usually are policy limits, especially on NFIP coverage.
Geography changes over time. Maybe you weren’t in a floodplain 15 years ago, but you could be now. Check www.floodsmart.gov to see if you’re in an area prone to flooding. If you aren’t eligible for NFIP coverage, then contact an insurance company for information. Ask your broker or agent, and they can line you up with these insurers.