When is flood insurance required?

If you are a property owner in the El Centro, CA area, one of the most important things that you need to do is carry proper home insurance. While a base home insurance policy is normally enough for most people, there are situations in which additional insurance is a requirement. In some situations, carrying additional flood insurance could be required. There are several situations in which having flood insurance could be required by you.

FHA Mortgage Requirement

One situation in which you will need to have flood insurance is if you have an FHA loan and are located in a flood zone. FEMA is a federal agency that updates a flood zone map on a regular basis. If you are in certain flood zones and have an FHA mortgage, you will be required by law to carry flood insurance. In many situations, the lender will also require that you have this escrowed on a monthly basis.

Other Lender Requirements

If you have a loan from a private bank, they still may require that you carry flood insurance. Mortgage lenders will underwrite each loan and property individually. If they determine that you are in a flood zone, or live in an area with heightened risk, they could require you to have additional flood insurance as well. This will protect their collateral and may need to be included as part of your escrow payment as well.

If you would like to learn more about your flood insurance needs or requirements, you should speak with the team at Armorcrest Insurance Services. The professionals at Armorcrest Insurance Services can help El Centro, CA area homeowners better understand their requirements when it comes to flood insurance. They can then help you get into a flood insurance policy that will properly protect your home and ensure you stay in compliance with all requirements.