A: Anyone who owns a home near a body ofwater—including lakes and streams—should buy a flood insurancepolicy to protect their property. As a general rule, flooding isnot covered by typical homeowners policies.

If you live anywhere near water of any sort you're at risk. Inthe deluge of claims following Superstorm Sandy, many policyholdersdid not know that their homeowners' coverage did not includeflood.

From 2008 to 2012, the average residential flood claim amountedto more than $38,000, according to the National Flood Insurance Program (NFIP). Yetmost consumers don't know what they can do to protect their homesand belongings against a flood event.

[Related: The4 things homeowners misunderstand about floodinsurance]

Standard NFIP policies cover damage from overflow of inland ortidal water, unusual and rapid accumulation or runoff of surfacewaters from any source, and midflow. NFIP can provide coverageavailable to any homeowner, regardless of their location, throughtwo separate client segments: standard and preferred (B, C andX zones), and high-risk locations (A and Vzones).

In NFIP's standard and preferred areas, annual premiums canstart as low as $415 a year for $250,000/$100,000 in coverage.Also, with private carriers entering the market in recent years,NFIP is not the only source for flood coverage.