Private insurance companies and the federal government recognized that their association would improve the overall success of the program. Accordingly, insurance companies administer the program, but the federal government funds the insurance.
There are some homeowner endorsements that will cover a back-up or overflow of sewers or drains or a sump-pump. These type losses sometimes do occur during flooding events. These endorsements will often have dollar limits substantially less than the flood policy
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.
Overflows from sewer systems or sump pumps are not considered a flood unless a flood has caused the backup and overflow.
90% of all natural disasters have some form of flooding.