Being a homeowner is a privilege which comes with risks. One is the possibility of flooding. Unfortunately, homeowners insurance does not cover the cost of flood damage. Flood insurance will cover your property/structure and most of your belongings if it is inundated by natural water (i.e., rain, waves, etc.).
A mortgage lender may require a flood policy if your property is located in an area deemed to be at high risk of flooding. However, even properties that are not in designated high-risk areas may require coverage. Flood zones are geographical areas assigned a specific rating depending on the estimated flood risk. A flood zone will determine how much flood insurance will cost, and whether or not it is mandatory to carry flood insurance.