Collapse or subsidence of land and the insured house, along a shore of a body of water caused by waves or currents of water are considered a flood and are covered by this policy.
Flood insurance is required by law for some high risk homes but only a minority of homes fall under this category. Congress passed some laws requiring that all federally-insured or regulated lenders, for instance mortgages backed by Fannie Mae or Freddie Mac require flood insurance to protect their investment in the property.
Overflows from sewer systems or sump pumps are not considered a flood unless a flood has caused the backup and overflow.
25% of homes with flood claims each year are in low risk zones.
Flood damage is not typically covered by a homeowners insurance policy.