I hear this question often from those who doubt a flood can damage their home. As a risk advisor, I understand that for many, the answer is the likelihood of experiencing a flood is low.
For those who want to play the odds, this is my best advice: insurance is best used to protect against those risks where the impact of a loss would be severe, and not just likely. MANY have regretted their decision to self-insure against potentially devastating losses simply because the “odds” were perceived as low. For risks that are unlikely, the cost to insure is often quite low.
What were the odds? Imagine you live in Vermont. What are the odds a hurricane will cause flood waters to enter your home? In a town where no one had seen any flood damage since 1927?
Check this video: http://www.floodsmart.gov/floodsmart/pages/videos/video_index.jsp