What type of insurance is specialized for covering flood damage?

Flood insurance is designed specifically to provide coverage for damage caused by flooding, which is typically not included in standard homeowners insurance policies. These policies are often geared toward protecting against perils like fire, theft, or personal liability, but they exclude flood-related incidents. As a distinct type of insurance, flood insurance responds to the unique risks and costs associated with flood damage, making it essential for homeowners in flood-prone areas or those whose properties are at risk of rising water levels.

While umbrella insurance provides additional liability coverage above and beyond what a homeowner’s policy may offer, it does not specifically cover flood damage. Similarly, earthquake insurance is tailored to cover damage from seismic events and is not applicable to flood scenarios. Therefore, flood insurance is the appropriate choice for addressing the specific needs related to flood risks.