Flood Insurance

Do You Need Flood Insurance?

Flooding can occur anywhere it rains, and flood insurance is mandatory for federally backed mortgages. Flood insurance is required to receive federally secured financing to buy, construct, or improve a building in a high-risk flood area, also known as a Special Flood Hazard Area (SFHA), In these areas, more than 75% of all flood claims are paid. Federally regulated or insured lending institutions must determine if the building is in a SFHA. If it is, the lender must require flood insurance on: FHA loans, VA loans, second mortgages, home equity loans, home improvement loans, construction loans, commercial loans, farm credit loans. Be aware that there is a 30-day waiting period before coverage goes into effect.

Visit Flood Smart, or call (888) 379-9531, for information about flooding and protecting your property and yourself. Flood Smart will also provide information on policy rates and coverage. For details on your specific property, it is best to contact a local insurance agent or lending institution.