Which type of insurance typically covers damages caused by rising water?

Flood insurance is specifically designed to cover damages caused by rising water due to flooding. This type of insurance is essential because standard homeowner's insurance typically does not include coverage for flood-related damages, which can result from heavy rain, melting snow, or storm surges. Flood insurance policies are often provided through the National Flood Insurance Program (NFIP), ensuring that homeowners in flood-prone areas have access to financial protection against such peril.

In contrast, homeowner's insurance generally covers damage from risks like fire, theft, or vandalism, but excludes flooding unless a separate policy is obtained. Earthquake insurance, as the name suggests, covers damages resulting from earthquakes, not flooding. Liability insurance provides coverage for legal claims against a policyholder, such as injuries or damages they might cause to other people or their property, but it does not address property damage from water or flooding incidents. Thus, flood insurance is the correct answer, as it directly addresses the unique risks and coverage needs associated with rising water.