What is "flood insurance" designed to cover?

Flood insurance is specifically designed to cover damages that result from flooding. This type of insurance provides financial protection for homeowners, renters, and businesses against the risks associated with flood-related water damage. Covering losses that are directly related to the overflow of bodies of water, flood insurance is crucial in areas that are prone to this natural disaster.

Flood insurance typically covers structural damage to buildings, as well as damage to personal property within the structure, as long as the policyholder has the appropriate coverage limits in place. This insurance is often necessary in flood-prone areas, and many mortgage lenders require it for properties located in designated flood zones to mitigate their risk.

The other types of coverage mentioned, such as losses from theft and vandalism, general property damage, and liabilities due to accidents, are addressed under different types of insurance policies, like homeowners' insurance or liability insurance. Therefore, they are not relevant to the specific protections that flood insurance offers.