Some areas are designated as flood plains. Your real estate agent can tell you if a certain home is included in that area. Depending on the property the mortgage lender may require that you purchase flood insurance in addition to your homeowners’ insurance. Even though it is an option, you may decide to purchase this rather low-cost policy as protection against the dramatic climate changes that are becoming more frequent. Your insurance agent can help construct a flood insurance policy that meets your needs.
In some parts of the country lenders are requiring that insurance policies cover special perils such as earthquakes, forest fire damage, rock slides, hurricanes, tornadoes, rock slides, rainwater washouts, etc. If your lender requires this, you must obtain this type of insurance before the lender will issue the mortgage loan.