There are two problems with that. One, many people outside high-risk zones don't have it -- including some who probably should. Two, the federal program maxes out coverage at $250,000 for the dwelling and $100,000 for your personal property, which could easily fall short of the amount needed to rebuild your home.
Flood insurance also has its own restrictions. Among them: It won't replace trees, decks, and pools, or help you fix your finished basement. It won't pay for personal property or for living expenses you incur while your home is uninhabitable. And as homeowners affected by storms Irene and Sandy in the Northeast have discovered, some claims are being denied if even an inch of the first floor is below ground.
Getting stuck with only $250,000 in coverage could happen more often than you imagine. When damage results from both wind and flooding -- as in most big storms -- insurers want proof that they, and not flood insurance, should pay. After Hurricane Katrina reduced thousands of homes to mere slabs, insurers simply denied claims because there was no proof the damage wasn't caused by flood (courts overturned most of those denials).
Contact our office for a no-obligation review of all your insurance needs.