This is interesting for me to read. Typically, flood insurance is regulated by the bank you got your mortgage from. They are required to determine if you live in a flood hazard zone and, if you do, must mandate that you carry flood insurance up to at least the value of our mortgage. I assume this may not cover possessions and may only be required to cover the bank's end - not yours - and so either you do not live in a designated flood hazard zone (determined by an entity separate from the bank; forget who at the moment though) or it doesn't cover possessions. Regardless I assume this is a pretty stressful time for you and I hope you weather it well!
Ha. We live in an area that is absolutely not in a flood zone or anything close to it. It was a freak weather event. The kind that don't happen in 80 years or so, but will probably start happening more often since weather is getting more extreme. It's only mildly stressful though :) I feel bad for the boatloads of people who got absolutely savaged by this. I haven't talked to a single person in the area that has flood insurance.