However, it generally doesn't cover destruction or damage caused by floodwaters. Standard homeowners insurance covers interior water damage, due, say, to a burst pipe, or weather events like tornadoes and rainstorms. The average cost of flood insurance is $700, but the final amount depends on the location and type and size of the structure, among other factors.Ī type of catastrophe insurance, a flood insurance policy is different than the basic hazard insurance coverage contained in a homeowners insurance policy.
The pricing of flood insurance policy is based on the NFIP-designated flood zone in which the property is located, as well as the property age, elevation, and the number of floors.The federal National Flood Insurance Program (NFIP) offers flood insurance to homeowners in participating communities, along with those determined to be in the NFIP-designated floodplains though the policies are offered through private insurers, the government sets the rates.Flood insurance policies are available for all residential and commercial properties.Flood insurance is a type of property insurance that covers a dwelling for losses sustained by water damage specifically due to flooding.