Flood Insurance and HELOC

[Ryan Church]

I've came across a very motivated seller for a house that is considered to be in the flood plane.

From what I understand, If I own the house outright without a mortgage, I do not need flood insurance. According to the owner and neighbors, this property and surrounding properties haven't flooded since the 1930's. 

My question is: If I buy this house cash and want to pull some of the cash back out, what's the best way to do this? I've been told possibly a HELOC, but if I do that will I then need flood insurance?

I'm sure this is different by each individual case and state but looking for any advice. Thank you.