If you are searching for the meaning of Flood insurance in real estate and also a definition of Flood insurance, then this blog post is helpful for you
Definition
A special and separate type of homeowner’s insurance the provides coverage for damages resulting
from flooding. Flood insurance is required by most lenders only if the property is located within a
designated flood plain. The cost of the policy is related to the associated flooding risk. If a property
has a small section of land located within a flood plain, but away from the residential
improvements (house), the lender will still require a policy, but its cost will be much lower.
Likewise, flood insurance policies for properties not located within any floodplain, are fairly
inexpensive.
Most flood insurance is underwritten by the federal government through FEMA and the National
Flood Insurance Program in cooperation with private insurance agencies. More than 18,000
communities participate in the Federal flood insurance program. More than 3.8 million National
Flood Insurance Program (NFIP) home and business policies are in effect. The United States
experiences flooding threats throughout all four seasons of the year and, in fact, flooding is the
most common natural disaster. There are, on average, 1000 floods per year in the U.S. Nearly
everyone is at some risk of experiencing the effects of flooding. In the Houston area, 25 per cent of
flood-insurance claims come from areas outside a designated flood plain.
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