It’s hard to know when a natural disaster is going to affect you, much less try to guess the potential damage. Consequently, people often are unprepared, or at least underprepared, for the aftermath. In the wake of all the flood warnings from Florida’s Panhandle into southern Alabama and Mississippi, there’s an urgent need to recognize the importance of flood insurance.

Officials estimate the damage caused by heavy rains and severe flooding in Florida’s Escambia and Santa Rosa counties will cost tens of millions of dollars. Homeowners often assume their regular insurance policy will cover them in the event of a flood. But that isn’t usually the case.

Many types of insurance require the policy holder to understand what the plan does and doesn’t cover. Flood insurance only covers physical damage to your property and possessions that’s caused directly by flooding. For example, damage from by a sewer backup only would be covered if the sewer backup was the direct result of a flood. If the backup was caused by anything else, it isn’t covered.

HLN Money Expert Clark Howard says it’s so important for homeowners to get flood insurance. And fortunately, it isn’t too harmful to your wallet, thanks to a federal flood insurance program that’s subsidized at super-cheap rates by taxpayer dollars. The National Flood Insurance Program is available through FloodSmart.gov. Premiums are usually between $100 and $400 annually and the policy covers up to $250,000 of damage. The program offers renters a special version of flood insurance that’s also subsidized.

Flood insurance only can be purchased through an insurance agent; you can’t buy it directly from the federal government. The NFIP has an agent locator on its site to help you find one nearby. See what’s available in your area and if you qualify for an insurance premium discount, which can be up to 45% if you live in a high-risk area and up to 10% in moderate-to-low risk areas.

Signing up for a policy is easy and you can even pay your premium instantly using a credit card. One thing to remember; the coverage typically won’t kick in until 30 days after you purchase your policy. Clark says there’s no excuse for not buying flood insurance if you live in or adjacent to a flood plain. And if you want additional coverage, insurers won’t offer that to you unless you first have this separate coverage from the feds. Check out FEMA's Map Center for flood information in your area.

Here are a couple of other tips when it comes to insurance and your home:

Homeowner’s insurance

Many people wonder if they should reduce coverage on their home if it’s worth less now than it was before the recession. Actually, it’s just the opposite. Clark says a lot of people wind up underinsured because the cost to rebuild is much greater now than the resale price of an average home. And if something were to happen, these homeowners would be stuck with a lot less coverage than they need. Unfortunately, this is exactly what happened to so many residents in Joplin, Missouri when an EF-5 tornado ripped through the small town last year. All homeowners need to get their policy evaluated, to make sure they’re getting the right amount of coverage. Don’t ever go too long without making sure the insurance on your home is up to date!

Renters insurance

What’s worse than a homeowner who’s underinsured? A renter who’s uninsured. Imagine your home being destroyed, along with everything in it, and not having one thing covered by insurance. Renters can avoid that situation for a pretty small price.

Renter’s insurance typically costs about $15 per month. In the case of a disaster, this coverage will pay for your possessions and, possibly, temporary housing. Even in the case of flood insurance, renters have a special option available to them for pretty cheap.

Here are some more things to think about when it comes to preparing for a disaster.

Understanding any type of insurance can get tricky and consumers often have a hard time identifying which types are necessary and worth the money. There are seven types of insurance that Consumer Reports says really just aren’t worth your time or money and some can end up costing you bigtime. Check ‘em out.