Flood Insurance
Direct definition
A policy that covers damage from flooding, which standard homeowners insurance doesn't cover.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Flood insurance is typically purchased through the National Flood Insurance Program (NFIP) or private carriers. Homes in FEMA-designated high-risk zones must carry it while a mortgage is in place.
Why it matters
Flooding is one of the most common — and most expensive — disasters, and it's excluded from most home policies.
Where you may see it
- Insurance policy
- Underwriting conditions
- Mortgage statement
A real-world example
Educational and illustrative only
A common misunderstanding
Standard homeowners insurance does not cover flood damage — it's a separate policy, often required in designated flood zones.
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- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026