flood and earthquake coverage. While there are policies that cover additional risks, most homeowners’ insurance policies only cover damage caused by threats such as fire, windstorms, hail, lightning, theft or vandalism.
Homes and businesses in high-risk flood areas with mortgages or loans from federally regulated lenders are required to have flood insurance. While flood insurance is not federally required if you live in a moderate- to low-risk flood zone, it is still strongly recommended to carry flood insurance to protect your property and contents in case of a flood.
and that doesn’t always occur. However, Federal assistance is not insurance, but a low-interest loan. FEMA gives an example that illustrates the loan process.
Borrow $50,000 at 4% and you’ll pay about $240 a month for 30 years. And that amount is in addition to your mortgage.
Everyone is eligible and it just depends on what zone and community you live in to qualify for the National Flood Insurance Program (NFIP). Private carrier options may be available for those who qualify or live in an area that does not participates with the NFIP.