- November 20, 2017
Congress mandated federally regulated or insured lenders to require flood insurance on properties that are in areas at high risk of flooding. If your property is in an area requiring the purchase of flood insurance, the lender will ask that you demonstrate that you have it and that you have added its name as a loss payee as part of the terms of the financing. As with homeowners insurance, flood insurance covers the risk of any loss due to flooding that may occur during the year for which the premium has been paid. A premium is payable each year.