Answers about Flood Insurance

My home is no longer in a Special Flood Hazard Area (SFHA) due to a change in the flood maps. Will I be required to maintain flood insurance?

It depends.

The lender is no longer obligated to require mandatory flood insurance under the Federal flood insurance statutes.  However; if permitted by the contract, the lender may continue to require flood insurance coverage to ensure that its collateral continues to be protected in case of flooding.

You may wish to consider converting the existing National Flood Insurance Program (NFIP) flood policy to a lower-cost NFIP Preferred Risk Policy (PRP) that insures property in floodplains, but not in SFHAs.

February 2011