What is flood insurance, and how does it work?

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Flood insurance, like all insurance, is a contract between you and an insurer through which you pay the insurer to cover your losses. In this case, flood insurance would cover any losses owing to flooding or flood-related erosion caused by waves or currents accompanied by a severe storm, a flash flood, an abnormal tide surge, or something similar. Flood insurance rates rely on government-created flood zone maps designed to make insurance available to homeowners, renters, and businesses.

Many homeowners are surprised to find that floods aren’t included in home insurance. Here’s what you need to know