Flood Coverage

Flood is excluded from standard property policies and has to be bought separately, either through the National Flood Insurance Program or the private market. Where a building sits in a Special Flood Hazard Area and carries federally related financing, flood insurance is mandatory rather than optional.

The mandatory purchase requirement is a lender compliance issue with real consequences: a lender that discovers a lapse can force-place coverage at punitive cost and charge it to you. Beyond compliance, the program limits available under the National Flood Insurance Program are low relative to the value of a senior care facility, so the base program alone leaves most of the building uninsured and excess flood is usually necessary. Evacuation is again the practical exposure: a flood-driven evacuation of a non-ambulatory resident population is expensive and slow, and whether that cost is covered depends on extensions rather than on the flood policy itself.