What is the requirement for purchasing flood insurance after receiving disaster assistance?
The National Flood Insurance Reform Act requires individuals in SFHAs who receive disaster assistance after September 23, 1994, for flood disaster losses to real or personal property to purchase and maintain flood insurance coverage for as long as they live in the dwelling. If flood insurance is not purchased and maintained, future disaster assistance will be denied. If the structure is sold, the current owner is required to notify the buyer of the house of the need to purchase and maintain flood insurance. If the buyer is not notified, suffers uninsured flood losses, and receives federal disaster assistance, the seller may be required to repay the federal government any federal disaster assistance the buyer received.
Related Questions
- Is participation in the National Flood Insurance Program (NFIP) a requirement to qualify for the PDM program? Are there any exceptions?
- Why is there a requirement to purchase flood insurance in communities that have not suffered flooding in many years or ever?
- What is the requirement for purchasing flood insurance after receiving disaster assistance?
