Many people do not think they need flood insurance. They live on a hill, their lender did not require it, they don't live in a flood prone area, my homeowners insurance will take care of it.
The truth is that you can have a flood anywhere. If you live on a hill, did it burn recently? When it rains, mud, water and debris can enter your home due to a lack of vegetation holding the hill together. Don't live in a flood prone area you say? What about the water main up the street? It could break and water enters your home. A broker fire hydrant can be just as bad.
You don't need to be in a high risk flood area to have a flood.
The standard home owner's policy does not cover flooding. Flooding is defined water and or mud entering the home from outside, filling up to a level with in the home and then receding or going back out. Many people find out too late that they do not have coverage. Worse still, many lenders in the areas affected by Katrina did not check or did not require flood insurance in areas that FEMA designated as a high risk flood area. They thought the levies would protect them. They did not.
A flood quote is free and a determination report can be ran by your agent to find out what type of flood zone you are in or you can check http://www.floodsmart.gov/floodsmart/.
It's better to be prepared than wait until something happens and you don't have coverage. Be safe, not sorry.