In order to secure financing to buy, build, or improve structures located in Special Flood Hazard Areas (SFHA’s) you MAY be required to purchase flood insurance. Federally regulated lenders are required by law to determine if the structure is located in a SFHA and must provide the buyer with written notice that flood insurance will be required.
A Flood Insurance Rate Map (FIRM) will generally show a community’s base flood elevations, flood zones, and floodplain boundaries. As a property owner/renter, you can use this map to get a reliable indication of what flood zone you’re in. However, maps are constantly being updated. Therefore, for a truly accurate determination, contact your insurance agent or company, or your community floodplain manager.
Homeowner’s insurance does not cover floods. Flood insurance can cost anywhere from $1,200 to $2,000 per year.