Insurance agents are of course, trying to be competitive in their estimates and including this coverage to someone who has not experienced any of these problems first-hand may seem like ‘overselling’. Often, if you don’t ask, agents won’t mention it. Also, some agent’s commissions are affected by claims on a policy and, again, these are common and expensive claims.

Policies before 1998 tended to have better coverage in this regard and they were set within normal policy limits. If you insured your home for any structural or replacement damage for $300,000 you would be covered the same for a flooded basement. Now the caps on these policies are set to $5,000 to $20,000 tops. Content and structure coverage are counted together preventing enough coverage to replace, repair, or restore lost items. But, if your basement is finished you may need more than $20,000 in coverage in the event that there is an major flood.
If you do have a sump pump protection rider or separate water back up policy it often will cover back up or failures of sump pumps, drains, or toilets. But the same policy will not cover your personal property.
Flood Insurance coverage can be pretty specific, from small leaks to when water is pouring over your foundation wall i.e. there’s boats in the street. This is insurance typically designated for a flood zone, or very low lying areas. If you live in such an area it is disclosed when you buy your house and you must have insurance. You most likely will not have a basement if you live in one of these areas.