According to data provider CoreLogic, 52% of the residential and commercial properties in Houston that are at high or moderate risk of flooding from Hurricane Harvey are not in federally designated flood zones. This could mean that many of the homes and businesses that have been damaged in the hurricane are not insured for flooding.
The Wall Street Journal’s Nicole Friedman notes that many property owners outside these flood zones aren’t required to buy flood protection and often forgo it.
Most residential flood insurance is provided by the federal government’s National Flood Insurance Program, which also insures some businesses. Federal flood maps are generally used to determine which property owners need to buy flood insurance. Homeowners in flood zones, for example, are required to maintain the coverage by their mortgage companies.
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