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“Help! I refinanced my home and now the bank says I need flood insurance!” This is a story we often hear.
When you buy or refinance a home that is near a body of water such as a lake, river or stream, your mortgage money lender will check the federal government’s flood insurance map to see if your site has the potential to flood. If they believe your property lies within a predefined flood hazard zone, you will be required to purchase flood hazard insurance. Invariably, people feel the insurance is too expensive.
There is a potential remedy. You can order a survey that will precisely show your home and its elevation relative to the upper elevation of the flood hazard zone. This is useful if your home appears to be near the edge of the zone - and you don’t want to depend on your lender’s best guess of your home’s location.
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