If you own property in a flood plain and have a mortgage, federal law requires you to have flood insurance. Homes and businesses located in communities that participate in the National Flood Insurance Program (NFIP) are eligible for flood insurance through this federal program. Under this program, insurance companies issue flood insurance and the federal government administers the program.

There is no need to “comparison shop” for flood insurance because the rates are set by the NFIP and are the same through any carrier.

Note: There is a 30-day waiting period after payment is received before your flood coverage takes effect, unless you need coverage in connection with a loan closing.