Flood Insurance Requirements for all Property Types

Determining if a Property Requires Flood Insurance

The underwriter must ensure that the subject property is adequately protected by flood insurance when required. Flood insurance coverage is required when a loan is secured by a property located in

• a Special Flood Hazard Area (SFHA), or

• a Coastal Barrier Resources System (CBRS) or Otherwise Protected Area (OPA).

The underwriter must determine whether the property is located in an SFHA, a CBRS, or an OPA by using the FEMA Standard Flood Hazard Determination form. All flood zones beginning with the letter "A" or "V" are considered SFHAs.

Note: If the subject property is located within a CBRS or an OPA, flood insurance is required regardless of whether the property is located in an SFHA.

Flood insurance is not required on a principal or residential detached structure securing the loan if the underwriter obtains a letter from FEMA stating that its maps have been amended and the structure is no longer in an SFHA.