Posted on: 25th Oct, 2008 04:47 am
I have been paying my mortgage with the same concern for over 15 years without flood insurance. My land is considered zoned in flood plains although a flood has not happened in twenty years. Could I just not suffer the loss if indeed a natural disaster (flood) happens again.
If a flood map shows you are in a flood zone, you are required to keep flood insurance on the mortgaged property. If you don't, your lender will "force place insurance" to protect their interest and the premiums are quite expensive. My suggestion is to call some insurance companies and get quotes and then get a binder
Most lenders have a 'common sense' policy that if the actual structure (yourhome) is NOT in the flood zone and just your 'land' is, then they typically will waive the requirement.. You would need to provide a survey showing this.
Senior Underwriter
Senior Underwriter
Yes they can and will force it as it is their investment as well.
i am in agreement with brian. not only that, despite your desire to avoid flood insurance, i can assure you that you'll be thankful should a flood ever occur.
I purchase my home 4 years ago and was not required to carry flood insurance (flood zone X) because I am not on a flood zone. Now I am being forced to carry flood insurance. Can the lender force you to carry Flood Insurance? How can I fight it?
see the previous comment on the issue of flood insurance
Here are 2 links that might help determine if your in a flood zone and the second one helps you find an agent.
http://msc.fema.gov/webapp/wcs/stores/servlet/info?storeId=10001&catalogId=10001&langId=-1&content=userHelp_homeowner&title=Homeowners/Renters
http://www.floodsmart.gov/floodsmart/pages/flood_policies/agent_locator.jsp
http://msc.fema.gov/webapp/wcs/stores/servlet/info?storeId=10001&catalogId=10001&langId=-1&content=userHelp_homeowner&title=Homeowners/Renters
http://www.floodsmart.gov/floodsmart/pages/flood_policies/agent_locator.jsp
I have a copy of my flood cert. I am not in a flood zone. But I should not be forced to have flood insurance.
thanks for the information..
thanks for the information..
Hi craig,
Did you try to speak to lender and show him your flood certificate? The lenders can force you to have a flood insurance. I agree with George that in case a flood occurs in your area, you will be thankful that you have taken a flood insurance.
Thanks
Did you try to speak to lender and show him your flood certificate? The lenders can force you to have a flood insurance. I agree with George that in case a flood occurs in your area, you will be thankful that you have taken a flood insurance.
Thanks
I don't mind paying for flood insurance....What I do mind is the cost $1800 a year. I am in a high flood zone because of a litttle creek that runs behind our home. Our house is about 55 years old and never had flooding problem.. Way to much!!!!!
I don't mind paying for flood insurance....What I do mind is the cost $1800 a year. I am in a high flood zone because of a litttle creek that runs behind our home. Our house is about 55 years old and never had flooding problem.. Way to much!!!!!
$1800 per year ? WOW
FEMA needs money so they are forcing the mortgage companies to get get the flood insurance for homes in flood zones. I hired a surveying company for $650.00. They found my home not to be in a flood zone! Do you realize flood insurance only covers flooring, appliances, furnace and not much more!??! FLOOD INSURANCE IS A RIP OFF! I was going to get flood insurance just to be safe but when I found out it doesn't cover much I was furious!
As a professional engineer and a certified floodplain manager, I have seen this issue countless times all over the United States. Here are the facts:
-A lender is required by Federal Law to force the purchase of flood insurance if your home (or sometimes just a portion of your property) if it appears in a Special Flood Hazard Area.
-Flooding is the nation's #1 natural disaster. About a quarter of all flood claims are in homes that aren't even designated in a Special Flood Hazard Area.
-FEMA was self funded by flood insurance premiums for 30+ years, until Hurricane Katrina in 2005.
-Hurricane Katrina alone did more damage and had more insurance claims than the previous 35 years across the whole entire country.
-FEMA is billions of dollars in dept because of Katrina and the 2004 hurricanes.
-FEMA has undertaken a map modernization program and has updated and digitized their maps over the last several years in many areas of the country.
I have had customers that were told they have to purchase flood insurance for more than $4000/yr and were found to be 10' above the actual floodplain. I have had another customer appear in a Special Flood Hazard Area and was found to be more than 50' above it.
I correct Flood Insurance Rate Maps for a living and help homeowners, business owners, loan officers, real estate agents, banks, and insurance agents correctly and accurately determine if they or their client is truly in a Special Flood Hazard Area.
We all know FEMA is not perfect...who really is? To correctly map every stream in the entire United States is such an expensive and daunting task, it's unreasonable to expect every square inch to be represented completely accurately. In the meantime, FEMA and the United States Government is making their best attempt to protect people from themselves. Most of us like to live near a lake, ocean or river. Most of us won't spend money on insurance if we don't have to. It's a dangerous combination.
Check out DRYLANDLLC.COM. It's a shameless plug yes, but there are experts out there than can help individuals and organizations navigate through FEMA's tedious process.
-A lender is required by Federal Law to force the purchase of flood insurance if your home (or sometimes just a portion of your property) if it appears in a Special Flood Hazard Area.
-Flooding is the nation's #1 natural disaster. About a quarter of all flood claims are in homes that aren't even designated in a Special Flood Hazard Area.
-FEMA was self funded by flood insurance premiums for 30+ years, until Hurricane Katrina in 2005.
-Hurricane Katrina alone did more damage and had more insurance claims than the previous 35 years across the whole entire country.
-FEMA is billions of dollars in dept because of Katrina and the 2004 hurricanes.
-FEMA has undertaken a map modernization program and has updated and digitized their maps over the last several years in many areas of the country.
I have had customers that were told they have to purchase flood insurance for more than $4000/yr and were found to be 10' above the actual floodplain. I have had another customer appear in a Special Flood Hazard Area and was found to be more than 50' above it.
I correct Flood Insurance Rate Maps for a living and help homeowners, business owners, loan officers, real estate agents, banks, and insurance agents correctly and accurately determine if they or their client is truly in a Special Flood Hazard Area.
We all know FEMA is not perfect...who really is? To correctly map every stream in the entire United States is such an expensive and daunting task, it's unreasonable to expect every square inch to be represented completely accurately. In the meantime, FEMA and the United States Government is making their best attempt to protect people from themselves. Most of us like to live near a lake, ocean or river. Most of us won't spend money on insurance if we don't have to. It's a dangerous combination.
Check out DRYLANDLLC.COM. It's a shameless plug yes, but there are experts out there than can help individuals and organizations navigate through FEMA's tedious process.
i think if mortgage company is forcing you for the payment then they should also take some part in the payment of the premium of the flood insurance .they also owe the property don't they?
