Posted on March 11, 2010.
Why FEMA needs insurance against floods at your house is not located in a flood zone? I recently asked a second mortgage. Loan insurance against floods in abeyance. My first mortgage does not need insurance against floods since my house is not in a flood zone. Loan Company said that FEMA has declared that my house is in a flood zone. Is there something new in the FEMA regulations?
FEMA never requires insurance against floods - it offered. The Bank is requiring insurance against floods, so you borrow money.
Every few years, the National Flood Insurance Plan "re-maps" areas. Your area may not have been in a flood plain 100 years of the first mortgage, but a new map could mean that it is supposed to be. You can always challenge by providing a certificate of elevation "you need to get from a land surveyor.
Flood plain areas change, due to construction, erosion, and water movements.
In addition, it might not be in one, but the person reading the map of flooding could have made a mistake in reading.
The brief is - not FEMA, it is the bank. Floodplains change. And people make mistakes.
It is the bank that is demanding to insurance against floods. You can check with your insurance agent and ask them what floodplain your home is in. If it is not necessary in a clear stream of the bank may have made a mistake. If your house is located in a floodplain of the government requires the bank to ensure that insurance against flooding on the property before granting the loan. If you do not have it and the bank statements, they get a fine.
