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Which of the following programs is likely to require a flood insurance policy as a condition of financial assistance?

a) Department of Veteran Affairs mortgage loan guarantees
b) HUD Community Development Block Grants
c) Federal disaster assistance
d) Home improvement loans from a bank participating in FDIC

User Kingchris
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Final answer:

The program likely to require a flood insurance policy as a condition of financial assistance is the Federal Housing Administration (FHA) program.

Step-by-step explanation:

In the United States, the Federal Deposit Insurance Corporation (FDIC) is responsible for deposit insurance. Banks pay an insurance premium to the FDIC, which ensures that depositors in a bank do not lose their money, even if the bank goes bankrupt.


However, the programs for deposit insurance do not require a flood insurance policy as a condition of financial assistance. Instead, flood insurance is typically required for certain types of loans, such as home improvement loans from a bank participating in the FDIC.


One example of a program that may require a flood insurance policy is the Federal Housing Administration (FHA) program. The FHA encourages banks to make low-cost loans to people seeking to buy new homes or rehabilitate old ones. Since flood damage can be costly, the FHA may require borrowers to have flood insurance as a condition of financial assistance.

User IluTov
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