Which type of policy is designed specifically for properties in disaster-prone areas?

The most appropriate choice for properties in disaster-prone areas is a Flood Insurance Policy. This type of policy is specifically structured to cover the unique risks associated with flooding, which is a common and significant hazard in certain geographical regions. Unlike the Basic Form and Special Form policies, which may primarily cover more general types of risk such as fire or theft, a Flood Insurance Policy provides tailored coverage for damage directly caused by flooding events, which are particularly critical in flood-prone areas.

Basic Form Policies typically cover named perils and may not include flooding. Special Form Policies might offer broader coverage compared to Basic Form but don't specifically address flood risks unless they are supplemented with additional flood coverage. High-Risk Home Insurance Policies may provide coverage for homes in areas considered high-risk for various perils, but they do not specifically address flooding unless they include a separate flood policy.

Therefore, the Flood Insurance Policy is the most relevant option for properties specifically at risk of flooding due to their location in disaster-prone areas.