Flood Insurance Considerations

Reblogger Roy Kelley
Real Estate Agent with Realty Group Referrals 16766

The federal government requires all federally regulated or insured mortgage lenders to require borrowers to maintain flood insurance if the property to be mortgaged is in a high risk flood area. 

Please visit the original blog if you wish to leave comments.

Original content by Randy Kirsch NMLS #1012303

The federal government requires all federally regulated or insured mortgage lenders to require borrowers to maintain flood insurance if the property to be mortgaged is in a high risk flood area.  Flood insurance is available only through the federal government in the form of the National Flood Insurance Program.  The National Flood Insurance Program ("NFIP") is operated by the Federal Emergency Management Agency ("FEMA").

While the federal government offers flood insurance, it is purchased throughflood local insurance agents.  It cannot be purchased directly from FEMA.

FEMA publishes flood zone maps that are available as part of the public records through the local governmental office or agency that is charged with maintaining land records as well as local and state emergency management agencies.  Flood maps are also available online through the FEMA Flood Map Service Center.

If the property being mortgaged is in a high risk flood zone as shown on the FEMA flood maps, the borrower will need to obtain and maintain throughout the term of the mortgage, flood insurance through NFIP.  However, flood insurance is also available for other properties regardless of location in relation to a high risk flood zone.  If the basement of a home is prone to flooding due to poor lot drainage or for any other reason, it is possible for that property owner to purchase flood insurance.  It is important to note that this flood coverage is available as a standard homeowner's property insurance policy does not cover damage caused by flooding.  Water damage caused by burst pipes is another situation altogether.

Flood insurance is relatively inexpensive and is dependent, like all other types of insurance, on the amount of coverage desired.  The NFIP website indicates that flood insurance can be purchased for as little as $129.00 per year.  This is a small price to pay for peace of mind for those properties prone to flooding whether or not the property located in a high risk flood zone.  If there is water in the basement when it rains, any damage caused due to flooding will only be covered by a flood insurance policy.

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Your Dedicated Mortgage Consultant!

Randy Kirsch, NMLS #1012303

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 X120

Fax: 860 647-8940

Cell: 202-827-6434

Email: randy@righttracfg.com



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The blogs written and published by Randy Kirsch are not in any manner whatsoever to be considered as legal advice or as a legal opinions.  If you have legal questions or concerns regarding any area of real estate law or mortgage law you are advised to consult a licensed, competent real estate attorney in your local area to address your concerns and questions.


Randy Kirsch does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.


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Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great information roy and definitely worthy of a reblog by reblog roy!  Thanks

Jan 21, 2015 10:47 PM #1
Captain Wayne - Rowlett Real Estate School
REcampus Fully Accredited Florida ONLINE & Classroom Training in Destin, Pensacola Florida - Panama City Beach, FL
Rowlett Real Estate School / Owner and Instructor

Something for people to always keep in mind. Thank you for sharing this.

Jan 21, 2015 10:58 PM #2
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Please be sure to leave comments at the original blog by Randy Kirsch

Jan 21, 2015 11:06 PM #3
Donald Hester
NCW Home Inspections, LLC - Wenatchee, WA
NCW Home Inspections, LLC

Ry, Great info thanks for the post.

Jan 22, 2015 02:31 AM #4
Randy Kirsch
Right Trac Financial Group, Inc., NMLS# 2709 - Manchester, CT
(NMLS# 1012303) Your Dedicated Mortgage Consultant

Thanks for the reblog Roy.  I appreciate it.

Jan 22, 2015 03:56 AM #5
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

We had a chilly Saturday in Kentlands. I did some work in the garden but am hoping for some warmer days to do the rest.

Dec 03, 2016 05:55 PM #6
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