Which insurance requirement must be fulfilled for obtaining the National Flood Insurance?

To obtain National Flood Insurance, one of the key requirements is that the property must be located in an eligible community. This means that the community must participate in the National Flood Insurance Program (NFIP) and must meet certain criteria established by the Federal Emergency Management Agency (FEMA). Participation in the NFIP typically involves the community adopting floodplain management regulations to reduce the risk of flood damage, which makes properties in those areas eligible for federal flood insurance coverage.

Being in an eligible community is crucial because it denotes that the local government has agreed to enforce floodplain management ordinances, ensuring that risks associated with flooding are mitigated. This requirement enhances the overall effectiveness of the flood insurance program and reinforces the importance of local compliance in gaining access to federal flood insurance benefits.

In contrast, the other options mention conditions that do not align with the specific eligibility criteria set forth for obtaining National Flood Insurance. Properties being on higher ground, built before 1968, or previous ownership of flood insurance do not meet the fundamental requirement for participating in the NFIP.