Which one of the following statements about flood insurance is TRUE?

This statement is incorrect because flood insurance is indeed available for commercial properties. Many businesses can purchase flood insurance to protect their assets and property against flood damage, ensuring financial security in flood-prone areas.

This statement is misleading as flood insurance is only required in certain circumstances, particularly for properties located in high-risk flood zones with federally backed mortgages. Not all real estate transactions necessitate flood insurance, as it depends on the location and financing of the property.

This choice is incorrect because flood insurance is not automatically included in standard hazard insurance policies. Homeowners typically need to purchase separate flood insurance policies to obtain coverage for flood-related losses, as standard policies usually exclude flood damage.