Insurance that protects homeowners against losses from a flood; if a home is located in a flood plain, the lender will require flood insurance before approving a loan.

Many homeowners falsely believe that their hazard insurance policies cover flood damage. The fact is a good homeowner's insurance protects against almost all perils EXCEPT flood. It is highly recommended that a separate flood insurance be secured if the property is located in a flood zone. It protects the homeowner against flood damage, regardless whether the White House declares a Federal disaster.

Federal law requires homeowners to carry flood insurance if their home is to be found in a flood zone. Your appraiser and lender will check to see if your property is located in a flood zone. FEMA (Federal Emergency Management Agency) determines the flood zones.

Prior to loan closing the lender request a Flood Certification to determine whether or not your property is located in a 100 year flood plain.

This process takes place on every loan, it is done by looking at a specific map. this map will show areas that have flooded in the last 100 years. If your home falls in one of these areas you will be required to purchase this type of insurance.

If you already own a house and have owned one for many years the flood plain may have changed. Due to weather variances over the last several years some flood zones have changed. If you were close to a flood zone before it might be in your best interest to find out if your porperty lies in the flood zone. Most major metropolitan areas have this information online.