Properties outside flood plains can still experience flooding. Heavy rainfall may create flash flooding or water run-off issues. A property located in a 100-year flood plain has a one percent chance of flooding every year.

Flood victims without flood insurance have to pay flood-related repairs out-of-pocket or rely on government assistance - which is not always offered. Most homeowners insurance policies exclude water damage caused by flood, surface water or the overflow of a body of water.

Flood repairs are costly. FEMA estimates flooding causes $8.2 billion dollars in damages in the United States every year. Flood insurance allows policyholders to share the cost of flood-related repairs with an insurance company or the NFIP.

A local property insurance agent can provide more information about flood insurance. Coverage begins 30 days after the flood policy's effective date and is available on the dwelling, personal property or both. Federally insured lenders insist on flood insurance prior to loaning money on homes located in flood plains.