Flooding caused by the torrential rain that's swept over the Northeast in recent days will deal a severe blow to the region's homeowners, most of whom have no flood insurance.

Homeowners' insurance typically covers rain that comes in from the top or side of a house — not through basements. In most cases, only homeowners who've bought flood policies from the federal government are insured against floodwaters that seep in through the bottom of the home.

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