If you have a mortgage... isn't flood insurance required ?
Only if you're in a flood zone.
Right, and a flood zone is an area that's seen flooding in the past fifty years or so.
Those living in areas not known to flood who have suffered serious flood damage are in a difficult position.
Their homeowner's won't cover the loss but whatever entity owns their mortgage will still require payments each month.
Probable federal government bailout for these folks.
Neither right nor wrong, just a measure to be used in what are desperate times in a populous region.