What is the main purpose of flood insurance?

The main purpose of flood insurance is to protect against damage from rising water. Flood insurance is specifically designed to cover losses that occur as a result of flooding events, which can include water inundation caused by heavy rain, storm surges, or other natural disasters. This type of insurance provides financial assistance to homeowners and businesses for repairing or replacing structures and contents affected by floodwaters.

Flood insurance is distinct from other types of property insurance because standard homeowner’s policies do not typically cover flood damage. This specialized coverage is essential in areas that are prone to flooding, thereby helping policyholders recover from a loss that could have significant financial repercussions.

The other options pertain to different types of insurance, such as theft coverage, fire damage, or liability for water-related activities, which are not the focus of flood insurance. Thus, these options do not align with the specific, focused objective of protecting against flood-related damage.