Flood insurance is required by law for some high risk homes but only a minority of homes fall under this category. Congress passed some laws requiring that all federally-insured or regulated lenders, for instance mortgages backed by Fannie Mae or Freddie Mac require flood insurance to protect their investment in the property.
Collapse or subsidence of land and the insured house, along a shore of a body of water caused by waves or currents of water are considered a flood and are covered by this policy.
There are some homeowner endorsements that will cover a back-up or overflow of sewers or drains or a sump-pump. These type losses sometimes do occur during flooding events. These endorsements will often have dollar limits substantially less than the flood policy
Private insurance companies and the federal government recognized that their association would improve the overall success of the program. Accordingly, insurance companies administer the program, but the federal government funds the insurance.
Floods can happen anywhere and without warning. 25% of homes with flood claims each year are in low risk zones just like yours. Give yourself and your family the peace of mind of knowing that they are protected should a flood happen. It will take a full 30 days from the time your policy is purchased to be valid so waiting to make this decision is a serious risk.