Flood Insurance is designed to cover damages incurred as a result of flooding.
This policy is a good investment for almost everyone. People living near large bodies of water are not the only beneficiaries of insurance dealing with flooding.
Homeowners insurance does not include coverage for rising waters such as floods from rivers, lakes, or drainage ditches.
A flood is the result of rising water. Thus, a lake or river that overflows is a flood. A storm drain that is blocked, causing water to rise on your street and enter your house, would be covered by the insurance plan and not homeowners insurance.
However, if that same storm drain is blocked, but not overflowing enough to enter your house, you may face a different issue.
Water can still enter your home if a car creates a wake, which sends water into your home. In this case, the homeowners policy would provide coverage.
Funds will be provided for temporary living arrangements, so you can stay safe while repairs are in place, and then move back into your home as soon as possible.