Flood insurance is an important subject to discuss with your agent.  There are many misconceptions about flood insurance, including who should consider buying this coverage.

See how much you already know about flood insurance answers True or False to the following sentences, then press the answer button to reveal the correct answer.

1. Insurance companies all sell different kinds of flood insurance.
False: Flood insurance is a federally-sponsored program with set limits and requirements. Each insurance company can only sell government mandated insurance. That's why it is important not only to have flood insurance, but to know the extent of the coverage and what qualifies.
2. Everyone lives in a flood zone.
True: 20-25% of all flood claims come from areas considered at low or moderate risk. Flooding can be caused by heavy rainfall, melting snow, hurricanes, water backup due to inadequate or overloaded drainage systems, dam or levee failure and more.
3. Flood insurance covers flooded basements.
False: Flood coverage is limited in basements or enclosures below elevated buildings. Your agent can review details with you to make sure you understand your policy completely.
4. Flood damage is already covered by homeowners insurance.
False: Homeowners policies specifically exclude flood coverage. There are also flooding instances that flood insurance does not cover. These include living expenses, landslides, and sinkholes, backup or internal sewers or drains and overflow from a malfunctioning or overwhelmed sump pump.
5. Federal disasters assistance is not insurance
True: Federal disaster assistance is not insurance coverage, but is a loan that must be paid back to the government with interest. When the president declares a federal disaster area, that releases government money to loan disaster victims for recovery efforts. Proper flood coverage should be used as protection instead of loan money.
6. Only people living in a flood zone qualify for flood insurance.
False:If your community participates in the National Flood Insurance Program (NFIP), you are most likely eligible for insurance. More then 20,000 communities across the nation participate.
7. Any type of water deluge qualifies as a flood.
False:There are specific guidelines set by the government defining what flood insurance can cover. If a water event does not qualify under government definitions, your insurance company can not reimburse you for the loss.

Summary:

1. Insurance companies don't sell different kinds of flood insurance. All flood insurance is regulated by the federal government.
2. To some degree, everyone lives in a flood zone, and should consider flood insurance.
3. Flood insurance offers limited coverage in basements. Be sure to review your policy with your agent.
4. Flood damage is not covered by homeowners insurance.
5. Federal Disaster Assistance is a loan, not an insurance payout.
6. People who do not live in a flood zone can still qualify for flood insurance.
7. There are specific guidelines for what qualifies as a flood. Your agent can review these guidelines with you.

To learn more about flood insurance and flood risks please fill out our Get a Quote or Flood Zone Determination form

*True or False questions and summary taken from Nationwide's The best time to think about a flood is when there isn't one.