Buy and hold in flood zone X

3 Replies

Hello. I'm on the fence about a buy and hold in a FEMA flood area X. if the property is mortgaged is Flood insurance mandatory? I know A and AE it is. Seems there is a lot of gray area in this subject.. Thanks

Its up to the lender. If its a traditional lender, IE Bank of America, they might require it - but to my understanding in zone X areas most lenders do not require flood insurance. However ... it so cheap ... why not get it for your property anyway? Its better to be safe than sorry, when it comes to things like flood insurance. I would get it.

I have a place in Zone X and my lender is making me carry flood insurance on it.  I just got the renewal and it will cost me $281 next year for $70k in coverage which was the loan amount and what the lender required.  It is one of the reasons I am debating paying off the mortgage on it early.  The problem is it is too close to an old dry creek that hasn't had flowing water in over 20 years and even in our rare three to four inch storms the water only gets a couple feet deep.  The place hasn't flooded in the over 100 years my family has  been in the area. 

Thank you for the input, I called two big lenders today and both told me zone x is not required if they financed it. that's good news for now. Just hoping things don't change..thinking I will pull the trigger on this one

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