My building is located in a Special Flood Hazard Area (SFHA) and the lender told me that I will be required to purchase flood insurance. Can I be exempt from the requirement to purchase flood insurance?
You can be exempt from purchasing flood insurance for a building or mobile home in an SFHA only if:
- The original principal balance of your loan is $5,000 or less and the original repayment term of the loan is one year or less; or
- The building is a structure that is part of a residential property but is detached from the primary residential structure of that property and does not serve as a residence.