What is an insured person in a flood zone designated B, C, or X required to do for flood insurance?

An insured person in a flood zone designated B, C, or X is required to buy a preferred risk flood policy because these zones are typically considered to have a lower risk of flooding compared to other flood zones, such as A or V. The preferred risk flood policy is specifically designed for properties in these lower-risk areas, providing a more affordable coverage option for homeowners. This policy helps to encourage individuals in these regions to purchase flood insurance, as it allows them to protect their property while potentially benefiting from lower premiums.

Overall, the preferred risk flood policy serves to mitigate risks for policyholders who may not otherwise purchase flood insurance due to cost concerns, ensuring broader coverage and financial protection against unexpected flood damage. This requirement reinforces the importance of flood insurance even in areas deemed low risk, as flooding can still occur due to various circumstances.