The NFIP flood policy only covers direct physical damage by or from flood. In contrast, a typical homeowners policy excludes damage by flood, as do many commercial or business owner policies.
Unlike homeowners and business policies, there are no endorsements that can be purchased which change the coverage in a NFIP Flood Policy.
Also, the NFIP policy forms are the same all over the country -- they do not vary from State to State.
Unlike typical insurance policies, there is a statutory maximum coverage limit in the NFIP. This amount could be less that the value of your property.
It is important to understand the exact meaning of flood and rising water, in any of non-NFIP policies, to understand the risks excluded in each. Note that coverage for flood risks might be available, for additional cost for some specialty commercial policies and for homeowners with high value property -- and often those larger policies coordinate with NFIP policies with deductibles or other language.
The "National Flood Insurance Program", a part of FEMA, adminsters the NFIP flood policy -- all created by Acts of Congress. That program is managed by NFIP/FEMA, following statutes and regulations which control everything about the NFIP Flood program -- everything from community eligibility, to underwriting, to costs, to claims and more.
Some elements of coverage in the NFIP Flood Policy are very limited, especially when compared to a typical homeowners insurance policy. This includes extreme limitations of flood coverage in basements -- areas with floors below ground on all four sides, or areas under-elevated buildings built after the community joined the flood program. The exclustions and limitations of the NFIP policy should be discussed with your agent.
NFIP Contents coverage must be explicitly purchased, and that coverage is not at replacement cost, rather at Actual Cash Value. There is a separate deductible for contents coverage.
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Flood insurance, offered through the NFIP/FEMA is completely separate from other assistance which might be provided by FEMA, the SBA or other Federal, State or local assistance after a natural disaster.
42 U.S.C. 5155 - "Duplication of Benefits" prohibits any duplication of benefits you receive from any other source, including other insurance and other federal programs.
Both the NFIP and those other assistance programs will request information about covered and non-covered losses under any insurance, or other sources for reimbursing your losses.
NFIP claims do not provide for economic losses, including business interruption, loss of use, or additional incurred expenses.
Unit owners in a condo building can buy a building flood policy for a condominium unit, but the unit's property damages might be covered by the condo association's NFIP flood policy -- the Unit owner building policy won't pay anything until the condo policy coverage is exhausted, with very, very limited exceptions.
