All > Business > Finance > Insurance > Flood Insurance

• Under the provisions of the Flood Disaster Protection Act of 1973, individuals, businesses, and others buying, building, or improving property located in identified areas of special flood hazards within participating communities are required to purchase flood insurance as a prerequisite for receiving any type of direct or indirect federal financial assistance (e.g., any loan, grant, guaranty, insurance, payment, subsidy, or disaster assistance) when the building or personal property is the subject of or security for such assistance.

  Federal Emergency Management Agency (FEMA) - Cite This Source - This Definition
  ×

  Cite Definition for Mandatory Purchase

  American Psychological Association (APA)

  Mandatory Purchase. (n.d.). National Flood Insurance Glossary. Retrieved April 1, 2023, from website: http://www.expertglossary.com/definition/mandatory-purchase.

  Chicago Manual of Style (CMS)

  Mandatory Purchase. National Flood Insurance Glossary. Federal Emergency Management Agency (FEMA). http://www.expertglossary.com/definition/mandatory-purchase (accessed: April 1, 2023).

  Modern Language Association (MLA)

  "Mandatory Purchase." National Flood Insurance Glossary. Federal Emergency Management Agency (FEMA). 1 April. 2023 http://www.expertglossary.com/definition/mandatory-purchase.

• Browse Related Terms: Flood Disaster Protection Act (FDPA) of 1973, Flood Hazard Boundary Map (FHBM), Flood Insurance Rate Map (FIRM), Flood Zone (Zone), Mandatory Purchase, Special Flood Hazard Area (SFHA), zone