In most cases, buying flood insurance is something that is highly recommended but optional. However, in a few cases, you may be required to purchase flood insurance. At LG Insurance Group, serving the Marietta, GA area, our customers ask us when and if they are required to buy flood insurance. Here are the groups of people that are required to purchase flood insurance.
Your Loan is Backed By the US Government and You Live in a High-Risk Flood Zone
If your loan is backed by the US government and you live in a high-risk flood zone, you will be required to purchase flood insurance. This is a mandate required by FEMA. You will be made well aware of this and will be required to submit the insurance paperwork before you can close on the house.
Your Mortgage Lender Requires You to Carry Flood Insurance
Another reason you may be required to buy flood insurance is that your lender requires it. In some situations, lenders, especially smaller credit unions or financial institutions, may require you to purchase flood insurance. If the lender requires it, it will be included in your loan paperwork and there is no way to get out of it unless you change lenders or pay your loan off.
Your Landlord Requires You to Carry Flood Insurance
The last reason you may be required to carry flood insurance is that your landlord requires it. Renters can purchase flood insurance. And depending on where you live, landlords may require you to purchase both renters insurance and flood insurance.
The above groups of people are legally required to carry flood insurance. Even if you are not required to, it is highly recommended you do. When you are ready to begin getting quotes for or purchasing flood insurance, contact LG Insurance Group, serving the greater Marietta, GA area.