Flood Insurance
InsuranceGlossary term
Definition
A separate insurance policy covering damage from flooding, which is excluded from standard homeowners insurance. Available through the National Flood Insurance Program (NFIP) or private insurers. Required for properties in designated high-risk flood zones with federally backed mortgages.
Related terms
- PremiumThe amount paid for an insurance policy, typically monthly, quarterly, or annually. Premium costs vary based on coverage amount, deductible, and risk factors.
- DeductibleThe amount you must pay out-of-pocket before your insurance coverage begins. Higher deductibles typically result in lower premium costs.
- Exclusions (Insurance)Specific conditions, events, or circumstances that an insurance policy does not cover. Common exclusions include pre-existing conditions, acts of war, intentional damage, and flood damage in standard homeowners policies. Understanding exclusions prevents coverage surprises.
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