1) No, a policy will typically not cover damages caused the homeowner's own negligence or fault--it covers damage outside the homeowner's control. Insured's can't cause the damage and then get compensation for it.2) Most homeowner's policies do have exclusions for flood damage under many circumstances. Such exclusions are legal, so if the terms of this policy exclude coverage from flooding from surface water (water not carried away properly), that exclusion would very likely bar coverage.