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.