A "flood" is defined as a general and temporary condition where water inundates normally dry land, covering at least two acres or affecting multiple properties, causing a partial or complete overflow and applies to building structures only.  Outside property that is not attached to a building or that does not directly support the functionality of the building is not covered.  Water can be from any source that enters a house or commercial building, including excess runoff, so even houses in a mountainous setting can be affected.

Most property policies exclude the peril of flood and coverage must be purchased separately with a maximum of $250,000 direct damage coverage on personal property buildings and $500,000 on commercial buildings.

Private excess flood coverage can be purchased if higher limits of coverage is needed or required by a financial institution.