Flood Insurance, what's with that?

What if the home you are considering buying is located in a flood plain? Your future mortgagor may in all likelihood require that flood insurance be bought to protect their investment in your property.

Congress created the National Flood Insurance Program in 1968 to reduce future flood damage through flood plain management and to provide people with flood insurance through individual agents and insurance companies. There are two types of Flood Insurance: 1) residential homes are insured up to $250,000. 2) Personal property (contents) can be insured for up to $100,000. Be advised you have to buy flood insurance separately, it is not automatically included in a normal home owners policy.

Flood damage to your home can be insured only with a flood insurance policy -- no other insurance will cover flood damage. Flood insurance is available through your insurance professional.

To determine if your home is located in a flood plain, contact your county planning office. If you are living in a flood plain, flood insurance may be an excellent purchase.
To be eligible for flood insurance, you must live in a community that participates in the NFIP. In return, communities must implement floodplain-management regulations that minimize future flood losses. To see if your community participates in NFIP, check its Community Status Book.

Reference http://www.nh.gov/insurance/consumers/documents/summary_cov.pdf
Reference http://www.insure.com/articles/floodinsurance/who-needs-flood-insurance.html