Are Some Property Owners Required to Have Flood Insurance?

Numerous conditions can cause flooding in Okeechobee, FL—pouring rains, hurricanes, storm surges, and king tides. Although flooding can happen anywhere at any time, certain areas are prone to more flooding than others. For homeowners and business owners with property in areas that are prone to flooding, known as high-risk flood areas, they might be legally required to maintain flood insurance on their property. To understand whether you’re required to purchase flood insurance for your home or business, contact Pritchards and Associates, Inc. in Okeechobee, FL to find out whether your property is in a high-risk flood area.

The Homeowner or Business owner Has a Mortgage

A home or business with a mortgage from a federally regulated financial institution or lender that is in a high-risk flood area is required to have flood insurance. Although there is no federal requirement that a home or business in a moderate-to low-risk flood area must have flood insurance, the lender might still require the owner to purchase insurance. 

The Homeowner Received Disaster Assistance

If a homeowner lives in a high-risk flood area and has previously received federal disaster assistance in the form of FEMA grants or low-interest loans from the U.S. Small Business Administration (SBA) after there was a Presidential Disaster Declaration, then the homeowner must purchase and maintain flood insurance if they want to be considered for future federal assistance.

If you have any questions as to whether you must purchase flood insurance for your property, contact Pritchards and Associates Inc. in Okeechobee, FL. We can answer any questions that you have about a flood insurance policy.