I found a great summation of some of the Flood Insurance basics today by the Insurance Information Institute. For the full article, click here. Here's an excerpt describing the pertinent facts:
Flood insurance covers direct physical losses by flood and losses resulting from flood-related erosion caused by heavy or prolonged rain, coastal storm surge, snow melt, blocked storm drainage systems, levee dam failure or other similar causes. To be considered a flood, waters must cover at least two acres or affect two properties.
Homes are covered for up to $250,000 on a replacement cost basis and the contents for up to $100,000 on an actual cash value basis. Replacement cost coverage pays to rebuild the structure as it was before the damage. Actual cash value is replacement cost minus the depreciation in value that occurs over time. Coverage for the contents of basements is limited. Coverage limits for commercial property are $500,000 for the structure and another $500,000 for its contents.
Excess flood insurance is available from some private insurers for NFIP policyholders who want additional coverage or whose communities do not participate in the program.
Previous Flood Posts:
Fairfax, VA Redraws Its Flood Map
Flood Insurance Facts
FEMA's Statement Regarding Damage Caused By Oil in Flood Waters