Lender forcing to buy flood insurance

6 Replies

I have SFH rental and have mortgage with same lender for few years now, all of sudden received notice to get buy flood insurance.

I ended up getting flood insurance as, if I dont buy with in time they provided they would buy on my behalf at higher price than I got.

I spoke to neighbors, none of them have flood insurance or they were asked by their lender.

What options I have here to not pay for flood insurance.

Ps: I own this property for 10 yrs and mortgage with this lender for past 4 years.

I do this as part of my day job actually.

Flood zones change all the time and it's a lender requirement

Just because your neighbors aren't in flood zone doesn't mean you can't be. 

Once you find out the zone, if it's close you do have some options to ask for it to be changed. 

You need to check what flood zone your house is in.  If it's AE or X you might be stuck. The form you want is the SFHDF

If you want out from the flood insurance requirement, you need to refinance with a lender that will not require it. 

The bank has more money tied into this deal so they just want to protect their asset. 

To your success! 

Originally posted by @Kiran K. :

@Alexander Felice Do I have to request this from Lender?

FEMA has maps that will tell you the base flood elevation. It's public, do a search.

NC has a great flood map search by address.  They've been updating the flood maps over the last several years, so yours may have been rezoned into a flood hazard area.  Mine was zoned out of it, since 2015 or so, but Raleigh delayed making the maps effective for years now, so I'm stuck paying it until they do.  You can start request for map amendment (search LOMA) to see if that could help, but newer maps are likely more accurate.