Advantages of Hiring the Best Lender-Required Flood Insurance Agent
The Ultimate Guide to Lender-Required Flood Insurance
If you have a loan on your property, then your lender pulled a report called a Flood Zone Determination (FZD). This document will tell the loan compliance department if you will need to purchase flood insurance for the home.
It may seem as if your real estate agent or mortgage lender is withholding that flood insurance is required until the property is ready for escrow. The FZD usually isn’t requested by the loan department until your purchase is well underway. Most realtors and Mortgage brokers are as surprised as you when the report comes back positive.
The flood nerds will demystify flood insurance and why you will need to buy it for your loan.
- Loans requiring flood insurance are federally backed money for properties located in higher-risk flood zone maps.
- Flood Insurance is a separate policy from your homeowners, which typically excludes coverage for damage caused by floods.
- Lenders usually will only require flood coverage on the structure; however, if you want coverage for your items, you can add that to the policy.
- There are two types of flood insurance, the government option, also called NFIP or FEMA, and the private flood insurance markets.