Is the purchase of flood insurance mandatory?
The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 requires the purchase of flood insurance as a condition of Federal or Federally related financial assistance for buildings within Special Flood Hazard Areas. For buildings located outside of the Special Flood Hazard Areas, purchase of flood insurance is not mandatory unless it is an established requirement of an institution’s standard lending practices. However, purchase of flood insurance for buildings outside the Special Flood Hazard Areas is a prudent practice.

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1. How does the NFIP benefit property owners? Taxpayers? Communities?
2. Is the purchase of flood insurance mandatory?
3. Why is there a requirement to purchase flood insurance in communities that have not suffered flooding in many years or ever?
4. Why is my lender requiring the purchase of flood insurance?
5. What if I disagree with my lender’s determination that I am in the flood zone?
6. How can a property owner determine if the property is in a Special Flood Hazard Area?
7. Are discounts offered for flood insurance premiums?