12/19/2023 0 Comments Flood plain insurance![]() ![]() Government-sponsored enterprises, such as Freddie Mac and Fannie Mae, have stricter requirements. The maximum amount available for a single-family residence is $250,000. Federal regulations require building coverage equal to the amount of the loan (excluding the appraised value of the land) or the maximum amount of insurance available from the NFIP, whichever is less. If a building is in a Special Flood Hazard Area, the federal agency or lender is required by law to require the loan recipient to purchase a flood insurance policy on the building. Lenders may have their own copies of the FIRM, or they may utilize a flood zone determination company to provide the SFHD form. Copies of the FIRM are available for review at the city's Planning and Redevelopment Department and can be accessed on the city's website as well. Lenders are required to complete a Standard Flood Hazard Determination (SFHD) form whenever they make, increase, extend, or renew a mortgage, home equity, home improvement, commercial, or farm credit loan to determine if the building or mobile home is in a SFHA. It also applies to all mortgage loans purchased by Fannie Mae or Freddie Mac in the secondary mortgage market. The law applies to secured mortgage loans from such financial institutions as commercial lenders, savings and loan associations, savings banks, and credit unions that are regulated, supervised, or insured by federal agencies. It is shown as 1 or more zones that begin with the letter A or V. The SFHA is the base 100-year floodplain mapped on the federal Flood Insurance Rate Map (FIRM). It also affects all forms of federal or federally-related financial assistance for buildings located in SFHAs. ![]() The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 made the purchase of flood insurance mandatory for federally-backed mortgages on buildings located within Special Flood Hazard Areas (SFHAs). Contents coverage may be purchased separately if the contents are in an insurable building. Building coverage is for walls, floors, insulation, furnace, and other items permanently attached to the structure. The NFIP insures buildings, including mobile homes, with 2 types of coverage: building and contents. Flood insurance covers direct losses caused by surface flooding and local drainage problems. The City of Oldsmar participates in the National Flood Insurance Program (NFIP), which makes federally-backed flood insurance available for all eligible buildings, whether or not they are in a floodplain. About the National Flood Insurance Program Contact any licensed property or casualty broker for more information. If your home receives flood water damage, whether or not you purchased a flood insurance policy is important - the type and amount of federal disaster assistance available to you change if you do not have flood insurance. ![]() To protect yourself financially, purchase flood insurance if your property is in a designated flood hazard area. ![]() Do this even if you do not (or did not) require a conventional mortgage loan to purchase your house or business. Check to see if your property is within a designated Flood Hazard Area. This includes federal grants, FHA and VA loans, as well as most conventional mortgage loans. Coverage becomes effective immediately at the time of a house title transfer.įlood insurance is necessary to obtain federally-secured funds to buy, build, or renovate a structure located in a Special Flood Hazard Area.There is a 1-day period after a policy coverage increase.There is a 30-day waiting period from the policy purchase until coverage begins, with the following exceptions: The contents of a rental unit are also insurable. This includes homes, condominiums, and mobile homes on foundations, businesses, and farms. General Flood Insurance Informationįlood insurance is available for most enclosed buildings, including contents. You can protect your home and its contents from flood loss through the National Flood Insurance Program. Flooding is not covered by normal homeowners insurance. ![]()
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