What is "flood insurance" typically excluded from?

Flood insurance is typically excluded from standard property insurance policies primarily because most property insurance policies, including homeowner’s insurance, are designed to cover a range of perils but do not include flood damage. The reasoning behind this exclusion is largely due to the high risk and potential for catastrophic losses associated with flooding, which often requires specialized coverage.

In many cases, the insurance industry has determined that such risks are better addressed through separate flood insurance programs. The Federal Emergency Management Agency (FEMA) administers the National Flood Insurance Program (NFIP), which provides options for individuals to obtain coverage specifically for flood-related damages.

While comprehensive insurance policies may provide broader coverage, they also often exclude certain natural disasters, and specific types of coverage can vary widely. Auto insurance policies focus primarily on vehicle-related risks and generally do not include property coverage, while health insurance policies address medical costs and are not related to property risks at all. This focus on property protection in specific, targeted flood insurance highlights the importance of understanding the limitations present in typical property insurance coverage.