If you borrow money to purchase a home in a floodplain:
A) your regular homeowners insurance policy covers floods.
B) you must purchase separate flood insurance.
C) you must build a retaining wall to keep out the flood waters.
D) you may obtain a waiver from FEMA and therefore be exempt from needing insurance against flooding.

Question

Quizplus · Accepted Answer

Regular homeowners insurance policies do not cover flood damage, so if you purchase a home in a floodplain, you are typically required to buy separate flood insurance.

If You Borrow Money to Purchase a Home in a Floodplain