Is anybody required to buy flood insurance, or barred from it?
Likelihood of flooding can dictate the particulars of coverage and cost. Private lenders generally require borrowers to carry flood insurance to cover the cost of a mortgage. Federally backed mortgage brokers must require their borrowers to carry flood insurance if the property is in a high-risk area. Also, those who have suffered flood damage and are seeking an SBA disaster loan must obtain flood insurance. The deadline is Aug. 5 to apply for a disaster loan to cover property damage. If a community doesn’t participate in the National Flood Insurance Program and its mitigation plan, nobody in that area is able to purchase the government insurance, Wilson said. Excess insurance on the private market is still available in such cases. What does flood insurance cost? The costs can vary widely depending upon the type of building and possessions being insured, and the likelihood of flooding. Cost also depends upon whether a company is insuring a building, contents or both. The cheapest annua
