Realtors: Did you know that your client's homeowners insurance policy WILL NOT COVER FLOOD DAMAGE???
Insurance against flood must be obtained separately. Your lender will do a flood certification early in the process, so have your clients get on it right away so that they can have a policy in place well before closing.
A flood insurance policy reimburses the policy owner for the work that they and other family members did to sandbag the home, move furniture and remove debris.
The Federal Emergency Management Agency's (FEMA) maps are important when it comes to flood insurance because if they show that the home sits in a 100-year flood plain, your client MUST BUY federal flood insurance in order to get a mortgage. If your client is buying outside of a high-risk zone, or if they're paying cash for the property, flood insurance is optional.
We have helped people who have somehow overlooked flood insurance (don't ask me how) and we've been able to bind coverage at the closing table! Try not to find yourself in that experience, but if you do, it's not the end of the world.
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