Flooding is the most common natural disaster in the United States. It's also the most expensive, costing homeowners, insurers and the government billions each year. If most of your wealth is tied up in your house, you may be risking financial ruin without adequate flood insurance coverage.
Homeowners insurance typically covers water damage from bursting pipes and overflowing toilets, sinks and tubs. It usually covers the costs if your dishwasher or water heater explodes. If you buy a special endorsement, your homeowner's policy also reimburses expenses incurred from sewer or water line backups.
However, your homeowner's insurance typically doesn't cover damage caused by water that has come in contact with the ground outside.
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