As a resident of Texas, it's very possible that you’ll ask yourself this question. And why would this question apply to only Texas? Almost any town in the United States is susceptible to flood. The decision to buy a flood insurance policy can only be made when one is fully aware of the benefits offered by this kind of insurance.

Below, you will learn about the key features of a flood insurance program. Such information should make you knowledgeable about the subject and help you to make an informed decision:

• Before you find out what flood insurance is all about, you should know that your homeowner's insurance may fail to provide coverage for damage caused by floods.

• Flood insurance is an optional kind of insurance that any homeowner can elect to carry; however, it is especially designed for those whose property is located within a nationally recognized flood plain. Buying a flood insurance policy becomes even more important for those whose property is registered as collateral. Your mortgage lender can let you know whether your property is situated in a flood plain or not. A mortgagee will be given this information before their loan is actually funded.

• A flood insurance program covers every type of damage that a property sustains on account of a flood. If some appliances have been damaged, they will be replaced. This insurance program could also comprise of coverage for huge furniture items that a homeowner may find difficult to move to higher ground. However, the probability is less that your flood insurance may cover moveable items like jewelry, clothing etc.

• There is no dearth of insurance companies that offer flood insurance to their clients. In fact, a homeowner can purchase their flood insurance program from the same company that sold them their homeowner's insurance. You never know, but if you buy multiple insurance policies from the same insurance provider, you could be offered some discounts as well.

• The need for flood insurance programs among homeowners in different areas across the country is acknowledged by the federal government. A program launched exclusively for flood insurance gives people the liberty to buy flood insurance policies irrespective of where they live. Another striking feature of this program is that it helps to ensure that annual premiums to be paid by policy holders in flood prone areas remain at reasonable levels.

• Flood insurance costs are known to vary and they largely depend on the kind of area where a property is located. The more a piece of property stands the risk of being flooded, the greater the insurance cost. On the whole, the annual premium to be paid by a flood insurance policy holder may vary from $150 to $400.

As far as flood insurance is concerned, to get the best deal, a homeowner should obtain quotes from different insurance companies and the coverage offered must be double checked.

Lastly, it is not necessary that flood insurance should only be bought by those who have their property situated in flood plains. Even those with properties at higher altitudes can purchase this insurance program and seek protection against water leakage, inundations, water logging etc., which may cause the same kind of damage that a flood does.

As you have just learned, anyone who buys a flood insurance policy will have a lot to gain and nothing to lose.