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Why doesn't homeowners insurance cover flooding?

Homeowners coverage is designed to address the perils all homes are subject to, no matter where they are located. These perils include fire, windstorm, theft, vandalism, etc. Homeowners rates & premiums are determined by predicting future losses. For fire, windstorm, etc. all homes everywhere are part of the data base as they all share these exposures.

Flooding is a peril that does not affect all homes. Only those in flood zones are likely to have a flood loss. Because all flood losses will come from only a small percentage of the total homes in the country, this would skew the rate making process. If we spread the expected flood losses over all homes when making rates, homeowners out side of flood zones would be paying for flood coverage that they will never use. People in flood zones would be paying much less than their actual exposure. In other words, people who don't need flood insurance would be subsidizing those who do need it.

In simple terms, most homeowners don't need flood insurance, so it doesn't make sense to include it in their coverage and make them pay for it.

Flood insurance does. I maintained a policy so far for 20 years.
Insurance policy usually cover the peril that could happen to everyone, such as fire. Flood and landslide are something that do not happen to every houses. However, you could still have it if you don't mind to pay a little more for the insurance.
What was the flooding caused by? Was it severe rainstorms? If so you have to have seperate flood ins.sorry. I'm forced to pay over $600 yr. for flood ins. thats seperate from my regular home owners ins. due to the fact that the gov't says I live in a flood zone, no where near water, no flooding for over fifty years. Hows that for government rip-off?
Flood insurance is sold separately from homeowners because it is run by the National Flood Insurance Program, you can find all the information you need at (FloodSmart.gov) it is a link thru FEMA that assist consumers in their decisions about flood insurance. It is very important that you verify what you have as far as your coverages,depending on where you live you may need windstorm and other pertaining endorsements to your homeowners policy.Every state has an agency that regulates insurance the website in your state may be helpful also. Unfortunately many people in the regions hit by Katrina and Rita last year found out the hard way that they had windstorm but no flood insurance and to date have been denied their claims for damage from those storms.
I am a licensed insurance agent in Florida
Same reason they won't cover war - it's not an insurable peril, if there are going to be claims, they will be too widespread to cover.

However, you CAN buy flood insurance in the US, through a FEMA program, called National Flood Insurance Program. FEMA sets the rates & terms, they are non-negotiable. Any agent licensed to sell home insurance can also sell you flood insurance.