Profile picture for user4130081

When does a lender decide if flood insurance is required

We are making an offer for a property.   Per FEMA map  (from what I understand)  ,  the property is in flood plain.  However,  the seller (builder)  says it does not require a flood insurance.  They also showed me a note from some lender confirming it.
We are planning to put an offer contingent to no flood insurance required.   Question is,   when during the mortgage process does the lender decide/check if flood insurance is required  ?  Is there any way for us to check ?
  • June 15 2014 - US
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Answers (3)

Profile picture for nwhome.us
I'll go with Tim's idea about the insurance carrier and the information that they have.
Making the insurance a contingency is also a very good idea but you'd have to be able to be somewhat specific about cost or type of coverage.
  • June 15 2014
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Profile picture for Outer Banks N C
You can always ask your insurance agent, they usually know and have flood maps. There are pockets of X flood zones in areas that have the riskier zones that require flood insurance, so that is very common.

You will want to ask the builder for an elevation certificate, that will tell you if you are in a flood zone that requires insurance.
  • June 15 2014
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Profile picture for wetdawgs
Flood maps have been updated recently, and the lenders will go with the latest version.   If the seller is saying it is not required, is the seller showing you documents with a recent date?

I would talk to the lender who gave you pre-approval to ask this question before wasting your time submitting an offer
  • June 15 2014
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