What is a "flood insurance policy" designed to cover?

A flood insurance policy is specifically designed to cover losses that occur as a result of flooding. This type of insurance provides financial protection for property owners in federally designated flood zones or areas prone to flooding. It can cover damage to buildings and personal belongings caused by rising water or overflowing bodies of water.

Flood insurance typically includes coverage for the structure of the building itself and the contents within, depending on the specific terms of the policy. It is important for homeowners, especially in flood-prone areas, to understand that standard homeowners' insurance policies often do not cover damage caused by flooding, making flood insurance essential for adequate protection against such specific risks.

The other options listed pertain to different types of risks. For instance, losses due to fire and vandalism are usually covered under standard homeowners’ insurance, while damage from falling trees might be included as well, depending on the circumstances. General property damage is a broad term that encompasses various types of incidents but does not specifically address the particular nature of flood-related losses.