Insurance: Fema Flood Maps

Fema Flood Maps

While residents and businesses of Rhode Island andConnecticut are looking to FEMA for help after flooding, those in California are screaming because new FEMA flood maps may mean they have to buy flood insurance for the first time. FEMA is updating flood hazard maps nationwide. After the update, if your home is deemed in a high flood risk area, you could be required to buy flood insurance. Most mortgage companies will not let you close on a home without flood insurance if your home is deemed by FEMA to be in a flood area. If you are determined to be in a flood area after the purchase and you don't get flood insurance, mortgage companies can buy it for you. You definitely won't have a choice if your loan is backed by the federal government -- Fannie Mae, Freddie Mac or the FHA -- and you're in a FEMA flood area: You will be forced to buy flood insurance.