The problem with flood insurance in the United States is that far too many people think "my house will never be affected" and they don't sign up for coverage. Our house is in an area that has literally zero chance of having surface flooding - we are on top of a hill and there are no waterways near our house. However, the house across the street from us (on the downhill side) had its basement flooded 7 feet deep a few years ago. But, if it were to rain enough and the ground were to become totally saturated and our basement walls caved in, regular insurance wouldn't cover the damage. If we didn't have a basement, flood insurance would be pointless for our house. We pay $400 per year for enough coverage to totally rebuild our house and replace all our stuff.