The most common natural disaster isn’t a tornado, earthquake, or severe thunderstorm. It’s flooding, according to the Federal Emergency Management Agency, or FEMA. 

And that agency would know, partly because it runs the National Flood Insurance Program. It’s designed to give homeowners in high-risk areas coverage they can’t get from typical insurance policies.

But when is flood insurance required? If it’s not required, can you get it anyway? 

You no doubt have lots of questions about flood insurance, so keep reading for some answers.

Who Needs Flood Insurance? 

If you’re buying a house, you may ask your real estate agent, “How do I know if I need flood insurance?” The most obvious answer is “If your mortgage company requires it.” 

If your house is in a high-risk area for flooding, mortgage companies won’t give you a loan until you get flood insurance. 

Who decides if an area is at a high flood risk? That job belongs to FEMA. They issue flood plain maps that show the risk of every address.

If your area begins with the letter A or V, that means your property is at a high risk of flooding. 

What if you have a B, C, or X on your property? That means you’re at low or moderate risk of flooding. 

If you’re in one of those areas, you can still buy flood insurance. Even if it’s not required by your mortgage lender, it can still be a good idea.

Should I Buy Flood Insurance?

In a way, it’s easier if your mortgage lender makes you buy insurance before you can close on a house. That way, at least you don’t have to ask yourself questions like “How do I know if I need flood insurance?”

You may want to start by talking to others in the neighborhood. Ask if they have it. If they don’t mind sharing how much they pay for it, try to get that number as well. But remember to stay polite.

If they don’t want to share how much they pay, they don’t have to. You can still get good information from other sources.

See if you’re eligible for something called Preferred Risk insurance. It means your chances of flooding aren’t as high. It also means you’ll pay less than property owners in areas that are at a higher flooding risk.

Where to Get Flood Insurance

The most obvious source for flood insurance is through the government. As mentioned above, FEMA runs the National Flood Insurance Program.

But what if you don’t want to buy flood insurance from the government? Depending on where you live, you may have other options.

Sources like Betterflood.com can provide you with more buying choices. Even if you don’t end up going with private insurance, it can’t hurt to see what else is out there. 

When Is Flood Insurance Required?

“When is flood insurance required?” is a good question, but it’s not the only one you should answer. 

If it gives you peace of mind, then flood insurance is a good investment. That’s the bottom line. 

Of course, it’s not the only type of insurance you’ll need. For more insurance tips and tricks, bookmark our site. We can help with everything from homeowners’ insurance to health insurance.