A flood insurance policy is different than a basic hazard insurance or homeowners insurance policy, as it only covers losses that occur due to flooding. Standard homeowner’s insurance policies will cover most other losses as long as they are not related to flooding. These claimable events include losses sustained by fire, wind damage and falling trees, to name a few. Unlike a standard hazard policy, flood insurance requires a policyholder buy separate policies to cover a dwelling and its contents.

Flood insurance policies are available for all homes and commercial properties, not just the ones that are determined to be in the National Flood Insurance Program’s (NFIP) flood plain. However, properties that are located in a flood zone and are mortgaged by a federally backed lender will require adequate flood insurance coverage to receive financing. The NFIP regulates the pricing of flood insurance policies, and the cost will not differ between agents. Factors such as the zone designation, age of property and number of floors can impact premium pricing.