Flood Insurance covers damages due to flooding for homes in predetermined flood zones. Most Homeowners’ Insurance policies do not cover flood damage. Flood insurance is a separate policy that can cover buildings, the contents in a building, or both, so it is important to protect your most important financial assets — your home, your business, your possessions.

Action Items: Find out if you need Flood Insurance. Send us your new flood insurance, if applicable.

What do we need?

If your home requires Flood Insurance, you will need to finalize a policy and send a copy of the Evidence of Insurance.

Where can I find it?

Contact your HOI provider to see if they offer Flood Insurance or visit https://www.floodsmart.gov/find to find a flood insurer. Once you have finalized the policy, they will issue you evidence of insurance.

Why do we need this?

According to FEMA: Floods can happen anywhere — just one inch of floodwater can cause up to $25,000 in damage. Most Homeowners Insurance does not cover flood damage. Flood Insurance is a separate policy that can cover buildings, the contents in a building, or both, so it is important to protect your most important financial assets — your home, your business, your possessions.

The NFIP provides Flood Insurance to property owners, renters, and businesses, and having this coverage helps them recover faster when floodwaters recede. 

Requirements for Flood Insurance are determined by FEMA and can be found in these Flood Maps. Flood Insurance requirements do not change and are not determined by lenders or brokers and should not be waived in any circumstance. FEMA determines flood zones based on historic flooding in the area and the future probability of flooding. According to FEMA, Congress mandates that federally regulated or insured lenders require Flood Insurance for all buildings located in a Special Flood Hazard Area (SFHA) with a federally backed loan.

Common Issues

Borrowers often do not want to purchase Flood Insurance, however, it is mandatory for home buying or refinancing. Flood zones are determined by FEMA and cannot be controlled by borrowers, brokers, or lenders – they are property-based. 

Flood maps are sometimes difficult to follow and interpret. As part of underwriting lenders check properties in existing flood databases to determine what designation of flood zone your home is in and the kind of insurance coverage that is required.

HOI Providers that borrowers get their standard policy from don’t always offer Flood Insurance in certain locations. This happens often with nationally based HOI providers. This adds more work for the borrower having to go through the Homeowners Insurance process twice.

Flood Insurance policies typically are more difficult to find and come with a wider range of premiums for your home.