A common question we get here at Hannigan Insurance, is "Do I Have Insurance Coverage If My House Floods?". The answer is no. Flooding is an exclusion on your Home Insurance Policy, it does not cover Floods.
Many people ... confuse Flooding with Water Back-up.
Many people here in Michigan confuse Flooding with Water Back-up. A lot of times your sub pump backs up which causes water damage, especially if you have a finished basement...that is not considered flooding! You can actually get an extra endorsment on your Home Insurance Policy called Water Backup & Sub Pump Overflow. This starts at around $50 a year and covers you in case your sub pump backs up due to rain water and causes damage to your basement or foundation (up to $5k or $10k).
The best way to find out if you have to buy Flood Insurance is checking with your local municipality or town and see if you are in a flood zone. If you are in a flood zone the premiums for a year of coverage are $700 a year, that is nationwide. If you are not in a flood zone, we recommend you still get it. Statistics show that most floods happen that are not even in a flood zone. You can usually carry Flood Insurance for around $340 for those that are not in a flood zone.