Flood insurance is affordable. There is a 30-day waiting period before a flood insurance policy becomes effective. You can purchase flood coverage at any time, but there is a 30-day waiting period after you have applied and paid the premium before the policy becomes effective. Call your own insurance agent. NFIP flood insurance is sold through private insurance companies and agents, and is backed by the federal government.
Insurance is less expensive than federal disaster loans.
Average annual premiums for NFIP coverage are significantly less than loan payments, even though those loans are granted under favorable terms. Eligibility for secured financing to buy, build, or improve structures in special flood hazard areas - Lending institutions that are federally regulated or insured must see evidence of NFIP coverage before they grant secured financing. Federal Coordinating Officer Botta also noted that provisions in the National Flood Insurance Reform Act of 1994 require that homeowners who live in communities that participate in the NFIP and receive a grant through the Individual and Family Grant program following a Presidentially declared disaster must purchase and maintain flood insurance for the life of the property. If they do not, they will not be eligible for certain types of federal disaster assistance in the future. If the property is sold, the seller must inform the buyer of the requirement to maintain flood insurance coverage.