Flood Myth: Everyone who lives in a flood zone has to buy flood insurance?

Myth #2: Everyone who lives in a flood zone has to buy flood insurance?

Nope. You must buy flood insurance only if you meet all three of these criteria:

• You buy a home in a special flood hazard area where there’s a 1% chance of flooding in any year.

• Your community participates in the National Flood Insurance Program.

• You buy your home using a loan from a federally insured financial institution, or a Fannie Mae- or Freddie Mac-guaranteed loan.

If you don’t meet these three requirements, no one will make you buy flood insurance.

About 5.6 million home and small-business owners live in the more than 21,000 communities that participate in the flood insurance program, according to the Government Accountability Office.

Read more: http://www.houselogic.com/home-advice/disaster-insurance/flood-insurance-facts/#ixzz1xghisnud