Flood Disaster Protection Act
Floods are among the most dangerous natural disasters to human life and property. However, according to the Federal Deposit Insurance Corporation (FDIC), Americans continue to build property in flood-prone areas. The Flood Disaster Protection Act was enacted in 1973 by Congress in order to protect homes which are most vulnerable. Does this Spark an idea?
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History
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Congress passed the National Flood Insurance Act in 1968, paving the way for the Flood Disaster Protection Act in 1973, according to the Federal Emergency Management Agency (FEMA).
Function
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The Flood Insurance Act helped make flood insurance available for homeowners. Prior to 1968, flood insurance was not available. The Flood Disaster Protection Act made flood insurance mandatory for owners whose property is located in flood-prone areas.
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Requirements
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According to the FDIC, lenders cannot lawfully extend a mortgage or any other type of loan to a person seeking property ownership in a flood area without ensuring that the owner first gets flood insurance.
Enforcement
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Property owners in flood zones who fail to purchase flood insurance in accordance with the Act will not be able to seek disaster relief in the event of a flood.
Benefits
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The Flood Disaster Protection Act is designed to help homeowners you in the event of a flood. Flood insurance purchases in addition to regular homeowners insurance will help recover losses if property is damaged in a flood.
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References
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