Homeowner Insurance Flood Stress Test

Most people don't find out their insurance was inadequate until it's too late. Here's how to gauge the strength of your homeowner's insurance before life does it for you.

Say you carry homeowner insurance but not flood insurance, because you don't live near a body of water and you've never seen a flood in your neighborhood.

Water is a common cause of home damage, but home insurance doesn't cover flooding.

Consider this: The National Flood Insurance Program, which offers flood policies nationwide, says one-third of all claims it pays are for policies in "low-risk" communities.

Additionally, the program estimates that 2 inches of water in your house would cause (on average) $7,800 in damage. Try out the program's Cost of Flooding tool for other estimates.

The same goes for earthquakes: Standard home insurance policies don't cover earthquakes. For that you need a separate quake policy or an endorsement to your home insurance. And it's not just Californians who should be on guard: According to the insurance institute, earthquakes have occurred in 39 states in the past 100 years.