According to the Federal Emergency Management Agency, or FEMA, 90 percent of major natural disasters in the U.S. involve flooding. Yet many at-risk homeowners choose to roll the dice and skip flood insurance.
With the widespread flood damage from Superstorm Sandy fresh in your mind, you should resolve to buy flood coverage if there is a moderate chance that your home could be damaged by rising waters during a storm. Your homeowners or renters insurance probably doesn't cover flooding.
Pete Moraga, spokesman for the Insurance Information Network of California, warns that floods can occur in unexpected places. "Sandy came along and proved it."
Don't assume federal aid will bail you out after a flood. If you are not in a declared disaster area, you may be on your own for repairs, unless you have flood insurance.
Policies that are available through FEMA's National Flood Insurance Program will provide up to $250,000 in coverage for the structure of your home and insure the contents for up to $100,000.