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Flood Insurance

Specialized insurance that covers damage caused by flooding, which is excluded from standard homeowners policies.

Detailed Explanation

Flood insurance is typically purchased through the National Flood Insurance Program (NFIP) or private insurers. It covers building structure and contents damage from rising water from outside sources like heavy rain, storm surge, or overflowing rivers.

Practical Example

When heavy rains caused the nearby creek to overflow and flood Susan's basement with two feet of water, her separate flood insurance policy covered the damage to her finished basement and stored belongings, which her standard homeowners policy would have excluded.

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