The cost of homeowner's insurance often depends on what it would cost to replace the house and which additional riders (additional items to be insured) are attached to the policy.
The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events. Typically, claims due to floods, amongst other standard exclusions (like termites), are excluded. Special insurance can be purchased for these possibilities, including flood insurance. You may want to consider additional levels of insurance for natural disasters that are more prevalent in your area.
