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.
If a house is destroyed due to the collapse of the land it is built on, and the collapse is due to waves or currents of water, that would be considered a flood and would be covered.
There are many things that you can do to protect your home and personal property. Click here to find out more.
Overflows from sewer systems or sump pumps are not considered a flood unless a flood has caused the backup and overflow.
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