Chicago considers eminent domain to seize underwater mortgages Insurers, Lenders Fight Over Foreclosure’s Policy Impact Buying a Home in Alaska – Owning – third in a four-part. – · Buying a Home in Alaska – Owning – third in a four-part series. This means that it is only likely for that home to flood in 100 years. If a home is in a flood plain, lenders may require flood insurance. We learned from Hurricane Katrina that most flood insurance will not cover flood damage directly caused by.