This is where title insurance comes in. Yet another insurance policy that a homeowner may be required to purchase is flood insurance. Flood insurance reimburses property owners that incur losses when their real property and personal property suffer from serious water damage. Water damage might happen when normally dry land becomes soaked by large amounts of water. This could occur from accumulation of runoff surface water, from the overflow of inland or tidal waters, or from erosion caused by heavy runoff water.
Flood insurance is available from various insurance agents.
The National Flood Insurance Program was created when Congress passed the Flood Disaster Protection Act in 1968. This program makes flood insurance available at reasonable costs through a joint program by private insurance companies and the federal government. Home buyers are still encouraged to consider the benefits of flood insurance even if the property is not in a designated flood area. Finally, many mortgage lenders offer life and health insurance policies for their borrowers. These types of insurance policies are not required.