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 insurance agent is the best resource to help you understand the ins and outs of flood insurance policies. They'll help you evaluate policy choices to ensure you get the coverage you need.