Final answer:
A Flood Program endorsement is added to homeowners or commercial property insurance policies to cover flood damage, which is otherwise not covered by standard policies. It is mostly associated with the National Flood Insurance Program but can also be offered by private insurers.
Step-by-step explanation:
The Flood Program endorsement can typically be added to a homeowners or commercial property insurance policy. This endorsement modifies the base policy to provide additional coverage for loss due to flooding that is not typically covered by standard policies. To add this endorsement, the insured must generally be participating in the National Flood Insurance Program (NFIP), which is managed by the Federal Emergency Management Agency (FEMA). However, some private insurers also offer flood endorsements separate from the NFIP.
It's important to understand the limitations and exclusions of a flood endorsement, and ensure that it meets the property's specific risk profile. For example, properties in high-risk flood areas might require a separate flood insurance policy instead of just an endorsement. Always consult with an insurance professional to discuss the appropriate coverage for your specific situation.