Over the past 50 years, every state has experienced flooding orsome sort of flash flood. This means that as a homeowner or renter,you don't have to live near a body of water to be exposed to thedangers of flooding. Heavy spring rains, a sudden thunderstorm ormelting snow from the mountains hundreds of miles away can beenough to cause rising water and flooding in the most unexpectedplaces.

The Midwest frequently experiences river flooding, the Northeastcan suffer Nor'easters and spring melting, and the West Coastfrequently has flooding from November through March. A flash floodcan bring a wall of water anywhere from 10 to 20 feet high. A fewinches of water from a flood can easily cause tens of thousands ofdollars in damage. If you're a homeowner, the purchase of floodinsurance is mandatory if the property is located in a high-riskflood area, and some lenders can still require it if you live in anarea with a lower risk of flooding.

Floods are No. 1 disaster in U.S.

Many people don't realize the floods are the number one disasterin the U.S. and the cost of recovery grows every year. According tothe Federal Emergency Management Agency (FEMA), the average floodclaim from 2008 to 2012 was $42,000. In 2012, the average floodinsurance policy cost $650 per year. In 2014, average claims paidranged from a low of $10,476 to a high of $42,275. Flood insurance rates in 2015 are expected toincrease by as much as 18%.

Hurricane season doesn't start until June 1, and even though aquiet season is forecast, heavy rains across the Midwest and Southare already causing flooding problems. Here are 5 things you shouldknow about flood insurance and preparing for floodingdisasters.

Photo: Kenneth Wilsey/FEMA

1. Flood risk areas

Flood hazard areas are identified by the National Flood Insurance Program (NFIP) as oneof three specific areas. Special Flood Hazard Areas (SFHA) and aredefined as areas have a 1% chance of being inundated by a floodevent in any given year. The 1% flood chance is often referred toas the 100-year flood or as the base flood.

SFHAs are labeled as Zone A, Zone AO, Zone AH, Zones A1-A30,Zone AE, Zone A99, Zone AR, Zone AR/AE, Zone AR/AO, Zone AR/A1-A30,Zone AR/A, Zone V, Zone VE, and Zones V1-V30.

Moderate flood zones fall within the 500-year flood zone or havea 0.2% chance of flooding and are identified as Zone B or ZoneX.

Areas identified as having a minimal flood hazard are higherthan the 0.2% elevations and are identified as Zone C or ZoneX.

Lenders believe that residents who live in a high-risk floodarea have a one in four chance of flooding during the term of their30-year mortgage and that's why flood insurance is required. Homesin moderate and low risk areas that have mortgages are typicallynot required to have flood insurance.

The NFIP has a Flood Insurance Rate Map (FIRM) whichidentifies the flood hazards for a community. FIRM has a tutorialfor homeowners to help them identify the flood risk for theirproperty so they know whether or not they should insure their homefrom a flood loss.

Photo: George Armstrong/FEMA

2. What does flood insurancecover?

Flood insurance covers both the building and contents inside,but it doesn't cover the land on which the dwelling is located.There may be limited coverage for basements, crawlspaces, lowerfloors and enclosed floors of elevated buildings.

Dwelling coverage will cover property up to $250,000 andcontents coverage insures up to $100,000 of personal property. TheNFIP recommends purchasing both types of coverage since homeownersinsurance will not cover losses attributed to flooding. Floodinsurance is not a valued policy and does not pay more than thepolicy limit for any losses. Like other insurance policies,purchasers must determine their deductibles for their property andcontents coverage, which will affect their rate.

Building coverage covers:

• The building and its foundation
• The electrical and plumbing systems
• Major systems like central air conditioning equipment, furnacesand the hot water heater
• Some appliances such as refrigerators, cooking stoves andbuilt-in appliances like dishwashers
• Permanently installed carpeting over an unfinished floor (e.g.,wood, cement)
• Window blinds
• Permanently installed paneling, wallboard, bookcases andcabinets
• A detached garage (up to 10% of building propertycoverage)

Coverage for contents includes:

• Clothing, furniture and electronic equipment
• Curtains
• Portable and window air conditioners
• Portable appliances such as microwaves and dishwashers
• Carpeting that is not covered under the building coverage
• Clothes washers and dryers
• Food freezers and the food in them
• Certain valuable items such as original artwork and furs (up to$2,500)

Photo: Andrea Booher/FEMA

3. What it doesn'tcover

There are a number of damages and expenses a flood insurancepolicy will not cover. These include:

• Currency, precious metals and valuable papers like stockcertificates
• Damage caused by moisture, mildew or mold that could have beenprevented by the homeowner or renter
• Property and items outside of the dwelling such as trees,plants, wells, septic systems, walkways, decks, patios, fences, hottubs, seawalls and swimming pools
• Financial losses due to business interruption or loss of use ofthe insured property
• Most self-propelled vehicles – e.g., cars, motorcycles,four-wheelers, etc.

Photo: DarrylBrooks/Shutterstock

4. Who should be insured?

Anyone who lives in a building located in a NFIPcommunity should have flood insurance whether they are an owner orrenter.

Flood insurance is available for individuals who live on afloodplain or in a high-risk area, even if the property has beenflooded before. A number of factors will affect the rates such asthe type of building, contents, whether or not the property has abasement, if all of the contents are located above ground level,the building construction, the property's elevation and where thephysical property is located (in a high-risk or low-risk area).

Photo: Pixsooz/Shutterstock

5. Preparation tips

While most flooding disasters will come with some warning, thereare steps that homeowners can take to prepare their properties wellbefore an event occurs or even to prevent minor floodingmishaps.

Start with an inspection of inside and outside spaces:

• Make sure that gutters and downspouts are clear of debris anddrain away from the structure.
• Landscaping should not allow water to collect next to thefoundation of the building. Remove any damaged or low-hangingbranches.
• Check low-lying areas that are vulnerable to water and ensurethat they drain away from any basements or foundations.
• Walk through the basement to see what furniture, photos,electronics or other contents could be compromised or damagedduring any flooding, and move them to a higher location or placethem in protective, waterproof containers.
• Do a full inventory of the home and contents – Going room byroom with a video camera and taking photos with a digital cameraprovides a quick inventory of collectibles, works of art, antiquesand other irreplaceable items. The inventory should be storedsomewhere other than the home or at least uploaded to thecloud.

Paperwork and preparations:

• Collect insurance policies pertaining to the home and befamiliar with what they do and do not cover.
• Ask your insurance agent to do a review of policy limits andexclusions so you know what's covered.
• Prepare supplies in case of a power outage– stock up onessentials like batteries, bottled water, canned goods,flashlights, etc.
• Have a checklist of items to grab if you only have seconds toprepare – e.g., purse, phone, laptop, medications

Taking these steps ahead of time, preparing for a variety ofdisasters and thinking through what to do and where to go will helpsave precious time if an unexpected emergency or disaster doesoccur. Reviewing insurance coverages and reducing the risk wherepossible will also make the recovery a little easier.

[Related: Do I need flood insurance?]