Flood Insurance Requirements for Mortgaged Properties

VOLUNTARY VERSUS FORCE-PLACED COVERAGE Homes and buildings in high-risk flood areas with mortgages

from federally regulated or insured lenders are required to have flood insurance. If a borrower does

not purchase flood insurance within 45 days of receiving notification to do so,

then: The lender has the authority to buy flood insurance for the borrower;

and The law prohibits federal agencies from approving any financial assistance

to any flood victim for reconstruction if that individual has not purchased the required flood

insurance.