Flood Insurance forced upon us

[kimberlywrites]

What is the name of your state? TX

I got a letter in the mail from the bank who holds the mortgage asking for proof of flood insurance. When I bought the house two years ago, flood insurance was not required. Apparently last summer FEMA and the county re-mapped everything and we are now considered to be in a flood zone, and therefore required by law to have flood insurance in order to protect the lender. Yet I can't get a policy quote without a "Flood Certificate" which involves getting an elevation survey...and THAT costs $750 just to get! Can the bank just force us into this? It seems like highway robbery! No wonder people are losing their houses!

 

[efflandt]

Have you been to the fema.gov website to get a free FIRMette at your address and list of map revisions (LOMC) to see if FEMA thinks you are in a flood plain? Although, that can change when locations flood that have not flooded before.

http://www.msc.fema.gov/webapp/wcs/stores/servlet/FemaWelcomeView?storeId=10001&catalogId=10001&langId=-1

There is a link to FIRMettes on the right and viewer at bottom left.

When I refi'd with my existing lender they asked if I had flood insurance and I said it was never required before (home was built 1910 and does not have or need a sump pump). It turns out that lender had gotten flood report for wrong county for refi (my city overlaps 2 counties).

 

[kimberlywrites]

Yes, they've already given me a zone code and everything. They say I am in an area where flood insurance is required by law. I thought, okay, I guess I have to get flood insurance. That's when I found out I cannot get it without an elevation survey certificate...which in turn is going to cost several hundred dollars to obtain.

 

[kat1963]

Sadly yes, they can force you to obtain flood. I don’t understand however why you can’t find a company to write the policy without having the elevation survey completed. We used Farm Bureau. The preliminary cost was $1,900 per year (dwelling only), had to be paid in FULL (standard). However, after the survey it dropped down to $745. I’m hoping to lower the premium again by adding of a few more foundation vents. You might want to consider being available when they do the survey so that they can give you direction on how to cut the costs of your flood insurance (if possible). We are in an AE flood zone, who knew? I'm now worried about my rentals in another state being in *undetermined*, guess it's only a matter of time...

Sorry about that, I know it sucks…

KAT

 

[seniorjudge]

Yes, they've already given me a zone code and everything. They say I am in an area where flood insurance is required by law. I thought, okay, I guess I have to get flood insurance. That's when I found out I cannot get it without an elevation survey certificate...which in turn is going to cost several hundred dollars to obtain.

Kim, this is an example of the Golden Rule: He who has the gold makes the rules.

 

[moburkes]

PM me for a flood quote. I wont be back to work until Tuesday. I can't imagine, either, that you need that. I just wrote one for a person whose new property didnt have a rating. We had to wait a few days, but there was no extra requirements.