{"ok":true,"canonical_url":"https://dealroom.so/glossary/flood-insurance","api_url":"https://dealroom.so/api/public/glossary/flood-insurance","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"flood-insurance","term":"flood insurance","group":"The loan itself","definition":"Insurance required by the SBA for any collateral property located in a Special Flood Hazard Area (SFHA) to protect against damage from flooding.","what_it_means":"If your business property or any collateral is in an SFHA, you must obtain flood insurance from the National Flood Insurance Program (NFIP) or an approved private insurer. This is a mandatory closing condition and an ongoing expense. Ensure the policy covers the full insurable value or the maximum available, whichever is less.","url":"https://dealroom.so/glossary/flood-insurance","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"flood-hazard-area","term":"Flood Hazard Area","url":"https://dealroom.so/glossary/flood-hazard-area"},{"slug":"special-flood-hazard-area","term":"Special Flood Hazard Area","url":"https://dealroom.so/glossary/special-flood-hazard-area"},{"slug":"flood-hazard-determination","term":"flood hazard determination","url":"https://dealroom.so/glossary/flood-hazard-determination"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"What environmental due diligence is required for real estate collateral located in a flood hazard area for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-environmental-due-diligence-is-required-for-real-estate-collateral-located-in-a-flood"},{"question":"How does disability insurance complement life insurance for business protection?","url":"https://dealroom.so/sba-7a/questions/how-does-disability-insurance-complement-life-insurance-for-business-protection"},{"question":"How does business overhead expense insurance differ from key-person life insurance?","url":"https://dealroom.so/sba-7a/questions/how-does-business-overhead-expense-insurance-differ-from-key-person-life-insurance"},{"question":"Why is long-term disability insurance considered a vital complement to business life insurance?","url":"https://dealroom.so/sba-7a/questions/why-is-long-term-disability-insurance-considered-a-vital-complement-to-business-life-insur"},{"question":"When is term life insurance more suitable than permanent life insurance for business protection?","url":"https://dealroom.so/sba-7a/questions/when-is-term-life-insurance-more-suitable-than-permanent-life-insurance-for-business-prote"},{"question":"Is a decreasing term life insurance policy acceptable for the SBA's life insurance requirement on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/is-a-decreasing-term-life-insurance-policy-acceptable-for-the-sba-s-life-insurance-require"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — flood insurance","url":"https://dealroom.so/glossary/flood-insurance","source_type":"DealRoom Data"}}