Insurance protection against damage caused by floods. For applicable parcels of real estate, lenders with a security interest in that real estate are required by law to either require that borrowers obtain flood insurance or to obtain flood insurance for their borrowers.
See flood hazard zone. American Banker Glossary
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flood insurance UK US noun [U] INSURANCE
► insurance that protects against the risk of damage to property or possessions caused by a flood: »
flood insurance programmes/policies/claims
Financial and business terms. 2012.