Flood insurance is an insurance policy that covers property damage due to natural flooding. This type of insurance is offered by private insurers but is encouraged and subsidized by the federal government. Buyers using a federally related mortgage to purchase a property in a floodplain are required to purchase flood insurance.
A floodplain is a level land area that is subject to periodic flooding from a contiguous body of water, such as a river, lake, or ocean. Floodplains are delineated by the expected frequency of flooding and are important in urban planning, agriculture, and environmental management.
