Flood insurance is available to property owners in flood-prone areas under the provisions of the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973. The main features of both Acts are: (1) the establishment of an expanded flood insurance program; (2) the organization of the program within the Federal Insurance Agency; and, (3) the coordination of flood insurance with management programs in flood-prone areas. The Acts have been amended several times.

It should be noted that a 1975 amendment prohibited federally regulated banks and savings associations from lending money for commercial or personal property construction, or for the purchase of mobile homes, to be located in flood hazardous areas unless flood insurance is available to protect the loan. Subsequent amendments exempted certain housings, businesses, and farm structures.

Flood insurance is outside the scope of the coverage afforded by a title insurance policy.

Requests for insurance or information regarding the location of land and its relation to a flood-prone area may be referred to Stewart Mortgage Information, a Stewart Information Services Corporation affiliate.

Before being accepted, closing instructions must be scrutinized in order to determine, if as a condition for closing, lenders require either a policy of flood insurance or information as to the fact that the land is not within a flood-prone area.

If a policy of flood insurance is requested, the lender's instructions must specify the name of the issuing entity and enumerate the terms and conditions thereof.