Residents may be aware of the extensive damage flood water leaves behind, but few actually have a plan for the financial hardship that comes with repairing structures and replacing belongings.

It takes just a few inches of water to cause serious damage. Homeowners and renters often buy insurance to help them recover from sudden and unexpected loss. Those unfamiliar with their policies may not realize that certain losses are not covered because of their widespread, unpredictable, and catastrophic nature. These specific situations, called exclusions, are outlined in the policy. Flood-related property damage falls in this category.

Coverage for flood damage is only available through a separate, stand-alone insurance policy. Flood insurance provides protection for only one type of loss - flood. Federally insured mortgage lenders require flood insurance on homes in high-risk areas. For everyone else, flood insurance is optional. Flood insurance is backed by the federal government, and sold through the National Flood Insurance Program and certain private insurers. It is available to people living in participating communities. Participating communities are those that have agreed to adopt and enforce floodplain management ordinances.