FLOOD INSURANCE

The Federal Emergency Management Agency (FEMA) maintains nationwide maps that track flood plains. Most lenders obtain a certificate for each property they finance to tell them whether that property is in or near a flood plain as determined by FEMA. If it is, they will likely require the borrower to obtain flood insurance, usually offered through the federal government. This insurance protects both the lender and the borrower against damage to the home (but not its contents) from flooding. The home owner can also obtain separate coverage for flood damage to personal belongings.


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