Answers about Flood Insurance
My home is located in a Special Flood Hazard Area (SFHA). I am thinking about obtaining a home equity loan. Will I be required to have flood insurance?
Yes. Flood insurance will be required if the loan is secured by a building or mobile home located in an SFHA in which flood insurance is available under the Flood Disaster Protection Act (FDPA or Act).
You can be exempt from purchasing flood insurance for a building or a mobile home in a SFHA only if:
- The original principal balance of the loan is $5,000 or less; and
- The original repayment term is one year or less.