Flood insurance is available to property owners in flood-prone areas under the provisions of the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973. The main features of both Acts are: (1) the establishment of an expanded flood insurance program; (2) the organization of the program within the Federal Insurance Agency; and (3) the coordination of flood insurance with management programs in flood-prone areas. The Acts have been amended several times.

It should be noted that a 1975 amendment prohibited federally regulated banks and savings associations from lending money for commercial or personal property construction, or for the purchase of manufactured housing units, to be located in flood hazardous areas unless flood insurance is available to protect the loan. Subsequent amendments exempted certain housings, businesses, and farm structures.

Title Insurance policies NO NOT cover flood insurance or whether a property is in a 100 year flood plain.

Requests for insurance or information regarding the location of land and its relation to a flood-prone area must be denied.

Before being accepted, closing instructions must be scrutinized in order to determine, if as a condition for closing, lenders require either a policy of flood insurance or information as to the fact that the land is not within a flood-prone area.  Flood Certifications as to whether a property is in a 100 year flood plain may be obtained from Stewart Mortgage Information.  (See http://www.stewart.com/ for more information)

If a policy of flood insurance is requested, the lender's instructions must specify the name of the issuing entity and enumerate the terms and conditions thereof.