Did you know? Most homeowners insurance does not cover flood damage    If you live in a Special Flood Hazard Area (SFHA) or high-risk area and have a federally backed mortgage, your mortgage lender requires you to have flood insurance.    Hurricanes, winter storms, and snowmelt are common (but often overlooked) causes of flooding.    If you live in a moderate-to-low risk area and are eligible for the Preferred Risk Policy, the flood insurance premium can be significantly lower than those properties located in a high-risk zone.    You may be eligible to purchase flood insurance as long as your community participates in the National Flood Insurance Program.