Q: When is flood insurance required?
A: Flood insurance is required in two basic scenarios:
- You have a mortgage and live in a high-risk area: If you have a mortgage from any federally regulated or insured lender and live in a high-risk flood zone, you're legally required to have flood insurance. You can figure out whether you live in a flood zone by typing your address into the Federal Emergency Management Agency's interactive map. This also applies if you own commercial property in a high-risk flood zone.
- You received disaster assistance (and want to remain eligible to receive it in the future): If you live in a high-risk zone and received either grants or low-interest business disaster loans from the US Small Business Administration following a presidential declared disaster, you must have flood insurance to receive future federal disaster assistance.
If you fall into either of these categories, your independent agent is your best resource for a flood insurance policy. They'll help you evaluate policy choices to ensure you get the coverage you need.