I am taking continuing ed for my realty license and in the midst of my studies I see this about flood insurance:

The typical 30-day waiting period for flood insurance coverage to become effective is waived if the building is in a Special Flood Hazard Area and the mortgage is obtained from a federally regulated or insured lender.

My paranoid mind thinks this way…so what if the building isn’t in the Special Flood Hazard Area and the mortgage isn’t obtained from a federally or insured lender? What if a hapless buyer of this stripe had purchased a home in one of the flooded areas of Nashville or Kingston Springs on April 20 of 2010? Hmmmm, that is before 30 days have passed. Me thinks you would have been screwed.