I have a mortgage, but don’t have flood insurance because my house is in an X-zone. Should I purchase insurance?

Most experts recommend purchasing federal flood insurance before the new maps are in place sometime in 2021. The chances are your home will be re-mapped out of the X-zone and, with a mortgage, your lender likely will require insurance with your new designation. It will be less expensive to purchase the insurance now, when you are in the X-zone than after the new maps. “Grandfathering” may apply to existing flood insurance. (See our section on grandfathering.

I do not have a mortgage and I do not have flood insurance. Should I purchase insurance?

That is a financial decision best made independently between you and your insurance agent. However, it will be less expensive to purchase insurance now, when you are likely to be in a lower risk area, than when the new maps relocate you to a higher-risk zone.

I have a mortgage. I have flood insurance based on my current flood zone. The new maps move me to a higher-risk zone. Will I have to pay the rates of the higher-risk zone?

Your current insurance plan will remain in effect if all the following are true: your insurance is in place before the new maps are implemented; AND, if you maintain consistent coverage; AND, if you do not make improvements or repairs valued at 50 percent or more of the market improvement value. The market improvement value includes only the value of the structure. It does not include the value of the land.

Contact your insurance agent: The rules and regulations that apply to federal flood insurance are complicated and your flood insurance specialist is best positioned to ensure you are appropriately covered.

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