Which type of insurance is designed to cover flood-related losses?

Flood insurance is specifically designed to cover losses resulting from flooding, which is a significant risk that typical property insurance policies, such as homeowners insurance, often do not cover. Flood insurance provides financial protection for buildings and their contents when they are affected by water inundation from rivers, lakes, or heavy rainstorms.

In many cases, homeowners insurance policies exclude coverage for flood damage, meaning that individuals looking to protect their property from flood-related losses must purchase a separate flood insurance policy, typically offered under the National Flood Insurance Program (NFIP) or through private insurers.

This distinction is crucial when understanding property protection options, as the other types mentioned—such as earthquake insurance, homeowners insurance, and windstorm insurance—address different risks and do not provide coverage for flood events. Therefore, choosing flood insurance is essential for areas susceptible to flooding to ensure comprehensive coverage against this specific peril.