Excerpts from the Wall St. Journal article:

…What they are finding, however, are policies better suited to Tampa, FL, than Teaneck, NJ.

…basic flood policies, most commonly provided by the National Flood Insurance Program…cover damage starting on a home’s first, above-ground floor, with limited coverage for basements. That usually is adequate in the Gulf Coast…

Link:

http://online.wsj.com/article/SB10001424053111904106704576580680749640602.html?mod=WSJ_PersonalFinance_PF4