The Consumer Federation of America and United Policyholders recommend consumers check to see if they have this clause in their home insurance policies and ask about it when they purchase home insurance. The advice is among several tips for homeowners the groups offered after Sandy.

"Unless you have these conversations with a broker and take good notes, you won't know what you have or what you need," Bach says.

Here's more on home insurance exclusions: what your policy won't cover.

Insurance company executives, meanwhile, admit the industry needs to step up education efforts.

"As an industry, we need to do a better job of educating our customers that flood is not a covered peril," said Liam McGee, CEO of The Hartford at the Property/Casualty Insurance Joint Industry Forum in New York in January.

Insure.com receives compensation from carriers when readers choose to request insurance quotes. This article is provided by an external partner that is solely responsible for the content.