It's a sad reality that standard homeowners' and renters' insurance policies do not cover damages caused by floods.
Flood-prone areas are frequently arranged by mortgage lenders to buy a separate flood insurance policy. If you own your home and rent it, you must do your own cost-benefit analysis and decide whether to buy such coverage.
It may be too late for residents in New York City and the surrounding area to buy policies to cover damages caused by the torrential rains that flooded the region on Friday, but more people may want to consider getting such policies for their future protection.
The Federal National Flood Insurance Program is the main provider of flood policies in the United States, which is managed by the emergency management agency, but coverage can also be available in certain regions from private insurers, such as Lloyd's of London.