Your homeowners insurance only covers interior water damage, due to a burst pipe, or weather events like tornadoes and rainstorms. It generally doesn't cover damage caused by flood or rising waters. If you think your home or business is located in a medium or high risk area or prone to this sort of natural disaster, you might look into getting this special coverage. Also flood insurance can be required by mortgage lenders when properties are located in federally designated high-risk flood zones or floodplains.