Reasons to Buy Flood Insurance
By Amy Kudlacek
Most lenders hate to discover that the property securing their loan is located in a Special Flood Hazard Area (SFHA), thus requiring flood insurance. Most borrowers do not understand flood insurance or why on earth they would ever need it. Many assume their homeowners insurance covers flood damage. Thus, the flood insurance requirement is often hard to stomach and many times leaves the borrower angry. I recently discovered the following news release from FEMA. While it is not geared specifically to those located in SFHAs, I felt some of the reasons listed to purchase flood insurance might help lenders soften the blow their borrowers might be feeling about the flood insurance they are required to purchase.
If nothing else, these pictures might help!
