PROPERTY INSURANCE
Flood insurance definition
Flood insurance is property insurance that covers loss or damage caused by flooding.
In practice, this means insurance that covers property damage caused by flooding. The cover is often purchased as an additional peril and added to an all risks property policy or a difference in conditions policy by way of endorsement. This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in relation to property insurance, commercial insurance and claims assessment. It helps clarify what losses may be covered and how policy wording affects the scope of protection. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Flood insurance is closely related to property insurance, catastrophe, named perils and all risks. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Property insurance, commercial insurance and claims assessment.
- Purpose
- Helps clarify what losses may be covered and how policy wording affects the scope of protection.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- property insurance, catastrophe, named perils and all risks.
Example of flood insurance
A warehouse is damaged after a nearby river bursts its banks. Flood insurance may cover the physical damage and, where included, related business interruption losses.