Typically, a standard homeowners insurance policy does not include coverage for potential flood damage. However, some individuals may confuse traditional flooding with internal flooding, which can be caused by a burst pipe or leaking plumbing fixture. In cases of internal flooding, homeowners policies typically cover the damage caused by the water, but do usually not cover the replacement or repair of a problematic pipe or fixture that causes the water to enter the rest of the home in the first place. For homeowners to cover potential loss in the event of this type of damage, they should look into home warranty programs and make sure before purchasing, that these programs will indeed cover these types of issues. All in all, it is very important to make sure that this distinction between the two types of flooding is understood before pursuing insurance matters.

Often, the importance of traditional flood insurance is overstated. In homes that do not have a real basement and sit on a slab foundation, flood insurance may be a waste of money. It is very rare to see a home flood without an underground basement. Also, homes above sea level may not necessitate this type of additional insurance unless specific circumstances call for it. For example, if the home is above sea level, but near a massive body of water, such as an ocean, than this may be a special circumstance. Also, if hurricanes are relatively common in the area, this may also spur the need for a flood insurance policy.

Before purchasing flood insurance, it is recommended that homeowners consult their current policy, if they indeed have one. Usually, the declarations page is located somewhere around page 3 on a typical homeowners insurance policy and summarizes the coverage types that are currently included within the active policy. If flood insurance is not located on the current policy, or homeowners are pursuing a new policy with flood insurance, it is recommended that homeowners research flood plain topography to determine whether or not their home is actually in danger of flooding in cases outside of an unusual, catastrophic event.