If Douglas owns a property in a flood zone and has no mortgage, what is true?

In a scenario where an individual owns property in a flood zone and does not have a mortgage, the requirement for flood insurance is not mandated by federal law. The National Flood Insurance Program (NFIP) enforces flood insurance requirements primarily for lenders who issue mortgages on properties located in designated flood zones. If a property owner does not hold a mortgage, they are not obligated to purchase flood insurance, even if their property is situated in a flood-prone area.

While it is often highly recommended for property owners in flood zones to consider obtaining flood insurance to protect their investment, especially given the potential risk, the lack of a mortgage means there is no legal requirement binding the owner to do so. Therefore, the correct statement reflects the reality that ownership without a mortgage does not impose a flood insurance obligation.