What is the definition of Flood Insurance?

Flood Insurance provides protection against losses and damage caused by flood. This is normally not covered by the standard homeowner's insurance or commercial property insurance since a huge percentage of applicants for these policies also pose a high risk to make flood-related claims. Instead, flood insurance is commonly sold by licensed insurance agents through the National Flood Insurance Program.

Floods can causes losses that may include damage to the home due to debris, silt and mud that entered or even filled the home. Homes may also be left more susceptible to mildew, rot and mold. Flood insurance can pay for the repairs and rebuilding of covered structures, as well as living expenses while the residents are forced to live in temporary shelters.

The cost of flood insurance is dependent on the location of the homes or property being insured. There are also some areas that have been designated as flood zones to help compute for the risk.

For automobile insurance, depending on the policy, flood damage may also be covered.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage