Flood Insurance is .gov program. No private insurers will issue it any more. Only people who buy it live in floodplains/places that flood. People that don't buy it, live in places that don't flood. Selection bias- so it's a HUGE money loser.
%Then we have a definition of what constitutes a flood. It has to be water coming from overland that affects the first floor. NOTHING in a basement or below grade is covered.
Around here, lots of houses have basements. Even if the water comes in through the front door and fills the basement, none of the mechanicals (furnace, water heater, washer, dryer, etc.) Are covered. Neither is any "stuff" down there.
And regular homeowners insurance specifically excludes floods. I do have a "Water Backup" rider on my policy. So should my water heater spring a leak, a hose to my washer break, my sump pumps fail, and water enters my home from below grade, I'm covered. One of my basement walls springs a leak, I'm covered. I've been here since 1991 and [touches wood] the worst it's ever been here on Lake Main St. is water 1/2 up my front yard, and some seepage in my basement.
House across the street has flooded, meaning water entered overland, 3 times* since I've lived here. The prior owner walked away from it, letting the bank foreclose, after the last flood. Why, Three Strikes and Your Out. The NFIP refused to renew her policy. They knew it would flood again. so a flipper bought it for 1/8 the price, spent a metric buttload to fix it up, and then had to declare all the previous flooding issues on the disclosure form. (Plus the prior owner had been on the wait-list for the County to purchase it with FEMA money because it had flooded before. All of which turn up in basic title searches and other due diligence.)
%FEMA's Flood Insurance Program. Yes, you "buy it" through a regular Insurance Agent, but no private insurance company offers it.
https://www.fema.gov/national-flood-insurance-program*- The basement turned into a swimming pool first, but that's neither here nor there, as anyone could easily see that the Ground floor of the house was under 1-3ft of water.