If the new maps — once adopted — indicate the building on your property is now at a higher risk for flooding, you will be required to purchase a flood policy if you carry a mortgage from a federally regulated or insured lender. If you do not have a mortgage, it is still recommended that you purchase flood insurance. During the life of a 30-year loan, there is about a 2½ times greater chance of having a flood in your home than having a fire. And most homeowners insurance policies do not provide coverage for damage due to flooding.
The National Flood Insurance Program (NFIP) has extended the low-cost Preferred Risk Policy eligibility period for two years to properties newly mapped into a high-risk zone. In addition, there are “grandfathering” rules to recognize policyholders who have built in compliance with the flood map or who maintain continuous coverage.