Answers about Flood Insurance

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 is one year or less.

February 2011