WHAT TO KNOW ABOUT FLOOD INSURANCE

Even if your home is outside a high-risk area, you may want to purchase coverage.

- BASICS BY KIPLINGER STAFF

SINCE 1996, 99% of U.S. counties have been impacted by flooding, according to the Federal Emergency Management Agency. And in recent years, extreme rainfall has become more common, causing devastating floods from the Texas Hill Country to the southern Appalachian Mountains.

But a standard homeowners insurance policy typically excludes water-related flood damage. To be protected in the event of a storm that causes flooding, you must have a separate flood policy. Nationwide, according to FEMA, just 4% of homeowners have flood insurance. If you have a government-backed mortgage and your home is in an area deemed as high risk, you must buy flood insurance. The insurance isn’t typically required if you're in a low- or moderate-risk area, but getting it isn’t a bad idea. According to the National Association of Insurance Commissioners (NAIC), 25% of flood losses occur in homes outside of high-risk areas.