Federal law requires flood insurance if the property is in a high-risk area; however, a lender can still require it in a moderate-to-low risk area.
The purchase of flood insurance is mandatory under federal law for all federal or federally related financial assistance for the acquisition and/or construction of buildings in high-risk flood areas (Special Flood Hazard Areas or SFHAs).
Federal law does not require flood insurance If the property is not in a high-risk area, but instead in a moderate-to-low risk area; however, a lender can still require it.
FEMA estimates more than 20% of flood claims come from moderate-to-low risk areas.
NOTE: The answers to coverage questions are primarily based on ISO forms generally used in Florida by most companies. However, please keep in mind that all companies forms are NOT necessarily the same. Some companies may provide broader coverage and some may be more restrictive. IN ALL CASES, THE CONSUMER MUST REFER TO HIS OR HER OWN POLICY FOR SPECIFIC COVERAGE INFORMATION.