Flood insurance is a type of insurance policy that covers damages caused by flooding. It typically provides coverage for damage to your property, as well as losses due to business interruption and personal belongings. Flood insurance is different from other types of insurance because it's backed by the federal government through the National Flood Insurance Program (NFIP). This means that you can purchase a policy directly from an agent or broker, rather than going through a private insurer. The cost of flood insurance varies depending on your location and level of risk, but it's generally more affordable than you might think. It's important to note that standard homeowners or renters policies do not cover damages from flooding, so if you live in a high-risk area, flood insurance is an essential protection against financial loss.