Which one of the following statements about flood insurance is TRUE

This statement is false because flood insurance is indeed available for commercial properties, allowing businesses to protect their assets from flood-related damages. The NFIP provides coverage options for both residential and commercial structures, ensuring that a wide range of properties can obtain flood insurance.

This statement is misleading. While flood insurance is required for properties located in high-risk flood zones if they are financed by federally backed loans, it is not universally required for all real estate transactions. Properties outside of designated flood zones may not require flood insurance, making this statement inaccurate.

This statement is untrue as standard hazard insurance policies typically do not cover flood damage. Homeowners must purchase separate flood insurance policies to ensure coverage for flood-related incidents, as flood damage is generally excluded from standard homeowners' insurance.