If you own a house that is located in an area that could flood, you should understand that you may need to purchase a flood insurance policy for your house. Your regular homeowner's policy will not provide coverage for damage caused by a flood, which means you could lose a lot if you fail to purchase insurance and experience damage from a flood. If you are considering this, here are a couple things to know.

Do you live in a flood zone?

First of all, if you live in an area that is considered a flood zone, you might not have the option of whether you buy the insurance or not. If you have a loan on your house, your lender might state that having flood insurance is a requirement. This is standard among lenders, and you should find out from your lender if this is required. If it is and you do not purchase flood insurance, your lender might purchase it for you. The problem is, the insurance your lender purchases for flood damage will only cover your lender's stake in the property. It would not cover anything for you, including the loss of your personal property.

What does it cover?

Secondly, you should evaluate what flood insurance really is before you buy it, simply so that you know what to expect if you ever need to file a claim on it. Typically, flood insurance would cover all the costs to repair your home or rebuild if a flood ever damaged or destroyed it. It may also provide ample coverage to replace all your personal possessions too. Every policy is different, though, and you should carefully choose the coverage your policy offers when buying a policy.

Where do you buy it from?

The other thing you should understand is that flood insurance is not something that every homeowner's insurance agency offers. In fact, you might not be able to buy a policy through the company that insures your house. Instead, you would have to shop around for an insurance agency who sells flood insurance. The other option you have is to purchase flood insurance from the government, as the government sells these policies too.

Adding a flood insurance policy could protect you immensely if you ever encounter damage from a flood. If you are interested in learning more about purchasing flood insurance, you should talk to an insurance agency that sells this particular type of insurance product.