I don't believe there is any company or organization, other than the National Flood Insurance Program, that will write a flood ("rising water") policy. The NFIP is a Federally-funded program, whose policies are sold and administered by private companies such as State Farm, Nationwide, etc. It's my understanding that the NFIP has two independent policies, one for the structure, and one for normal household furnishings. Both policies are listed under the NFIP heading, but must be purchased separately. Normal household furnishings are understood to include only those items that would be found in any and every home, such as beds, chairs, tables, bookcases, kitchen utensils, and the like. Hobby items, art supplies, computers, books, etc. are not considered normal household items, thus would not be covered. NFIP rates are quite low, $256/yr for both policies in my case, yet more than 75% of folks in Mississippi who were flooded by Hurricane Katrina did not have flood insurance prior to the storm.
During january, anyone in the G-Scale section of faithful readers of my blog (I'll update soon I swear) knows that during the first spring thaw after xmas, just before new years, the sump pump failed after 2 things: 1) tree branch took out the sump pump hose extension, so it was working overtime. 2) tree branch #2 took out the neighborhood's power supply. Flooding happened within 10 seconds. I grabbed my equipment in the basement, locomotives/rolling stock first, buildings second (I'm lucky I only had 3 buildings at the time) and track last. Unfortunetly, because I cared more for my engines, my transformer fried. The Insurance adjuster stated that because it wasn't turned on when the water leaked into it, that it wasn't covered. It wasn't on because the bloody power went out prior to the flooding. I had it on and running. I ended up salvaging an old computer power supply to rig my transformer to run (safely mind you, no fires. I'm good with electronics :3). But That was _WITH_ Statefarm. so their "Garden Railroads are covered" is one of those, I'll believe it when I see it. I got lucky this time and only my transformer got damaged. But those who are not, I feel sorry for them even though I truely have no idea how much that can make one feel. If possible always make sure you're investments can be moved quickly or insure them.
Flood coverage is done two ways. Optional selection by the homeowner, just as with earthquake coverage, riders for collections, etc. The other is when mandated by your mortgage holder. This due to your home being sited within a certain category of flood plain. It's then up to the mortgage company to determine whether they want you to have it. And can be quite costly depending on where you are located. Boxcab E50
