How does a flood insurance policy differ from standard homeowners insurance?

A flood insurance policy is specifically designed to cover damages resulting from flooding events, which are generally not included in standard homeowners insurance policies. Homeowners insurance typically provides coverage for a range of perils such as fire, theft, and vandalism, but it expressly excludes damage caused by flooding. Thus, homeowners in areas prone to flooding are often required to purchase a separate flood insurance policy to ensure they are protected against such risks.

This distinction is vital because homeowners may mistakenly believe that their standard policy covers all types of water damage. By recognizing that flood damage is excluded, homeowners can make informed decisions about securing additional coverage specific to flood risks, which is crucial for protecting their property effectively.