Floods are the nation’s most common and costly natural disaster and cause millions of dollars in damage every year. Floods cost America, on average, $8.2 billion each year (according to 2015 data). Recovering from just one inch of water inside your building can cost about $27,000.
Homeowners and renters insurance typically does not cover flood damage. Owners may be required to have flood insurance. Congress has mandated federally regulated or insured lenders to require flood insurance on mortgaged properties that are located in areas at high risk of flooding. But even if the property is not in a high risk flood area, the mortgage lender may still require you to have flood insurance.
Flood insurance can only be purchased through an insurance agent or an insurer participating in the NFIP. You cannot buy it directly from the National Flood Insurance Program (NFIP). If the insurance agent does not sell flood insurance, you can contact the NFIP Referral Call Center at 1-800-427-4661 to request an agent referral.
Before purchasing a home you or your buyers can check to see if flood insurance is mandatory for the property. Flood Insurance
If you have more questions about flood insurance, please follow this link to the FEMA website.