It is of particular concern if you have a basement studio, many many homeowners policies limit the value of the basement contents. In my area there was a flood about 10 years ago , and the insurance companies lobbied to change the laws , to exclude or limit basements. Much of the damage was from sump pump failure since there was a power outage at the same time which is differnent from flood damage. Just a word of caution be very specifc when you discuss with your agent. Mine first told me "of course you are covered" till I started detailing the contents, the value , and the location of my "investment". When in doubt if you think there still is a some question ... ask them to put it in writing IE letter , policy amendment etc.