Water damage is top of mind with most people lately due to Superstorm Sandy's flooding of the homes in New York and New Jersey. Most of us in Florida equate water damage from flooding caused by tidal surges or rainwater runoff as a result of hurricanes. A flood is generally described as rising water due to overflow of inland or tidal waters or unusual repid accumulation or runoff of surface water from any source. Homes in our area within designated flood zones are typically required to maintain federally funded flood insurance by our lenders. These flood policies average around $600 and cover building and contents. Even if you don't live in a flood area, it may be wise to buy a flood policy. I'm sure some of the folks living in the Northeast never thought they would ever be afftected by a hurricane, much less flooded by one.
Water damage may or may not be covered by your homeowner's insurance policy. If you aren't sure about what water damage your insurance policy covers, contact your insurance agent and go over the coverage on your policy. Ask if you need to purchase additional or separate coverage along with other questions.
For more information, see the National Flood Insurance Program.