What does a flood policy cover exactly?

Most people purchase flood insurance because their mortgage company requires it. On the lowest level of the property, a flood policy only covers mechanicals such as a furnace or water softener. If you have a finished basement, you will never receive a payment for drywall, carpeting, or furniture. If you do purchase contents coverage, a policy restricts furniture. For example, you might only be allowed to claim one couch and one coffee table, not necessarily everything that was destroyed in the flood.