What does a flood policy typically cover?

A flood policy primarily covers the overflow of water above ground, which includes water rising from rivers, lakes, or other bodies of water that inundate areas typically not submerged. This definition aligns with the standard understanding of flooding in insurance terms, where policies are designed to address the specific risks associated with external water sources that can lead to significant property damage.

Flood insurance is distinct from other types of water-related damage coverage. For instance, damage caused by rain that seeps into structures is not typically covered under a flood policy, as this can often fall under standard homeowners insurance, depending on the circumstances. Groundwater flooding is also not covered, as it usually pertains to water that emerges from underneath the ground rather than from above, which reflects a different risk category understood in flood insurance contexts. Water damage resulting from burst pipes is a plumbing-related issue and is usually covered through homeowners or property insurance policies rather than flood insurance.

Understanding these distinctions can help clarify the specific protections offered by a flood policy, which is vital for homeowners considering insurance needs in flood-prone areas.