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.
Last Reviewed: October 2020
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