I purchased my property more than ten years ago, and at the time of purchase, my home was not located in a Special Flood Hazard Area (SFHA). I was notified that my home is now in an SFHA, and my lender is requiring that I have flood insurance. Can the lender require me to have flood insurance?

In 2003, Congress mandated that the Federal Emergency Management Agency (FEMA) update the nation’s flood hazard maps. This effort, known as Flood Map Modernization, used the latest data and technology to identify the current flood risks in communities nationwide.

If a building in a moderate- to low-risk flood zone was newly mapped into a high-risk SFHA and is secured with a mortgage loan, the lender may be required by statute to require flood insurance.

September 2019