Flood insurance covers only flood-related property damage. Coverage is available to individuals living in participating communities that have agreed to adopt and enforce FEMA's food plain management regulations and ordinances. The National Flood Insurance Program and a handful of insurance companies provide flood insurance policies. Flood insurance must be in place 30 days before coverage begins.

Factors that affect flood insurance pricing are location, flood zone, structure design, year of construction, deductible, and more. Coverage is capped at $250,000 on the dwelling, and $100,000 for personal belongings. Review the policy for limitations and exclusions, especially if you have a finished basement. Flood insurance does not cover loss caused by sewer or drain back up or sump pump overflow, but many homeowners insurance offer policy add-ons for this type of loss.