*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Flood insurance is a product added in addition to homeowners insurance that mortgage lenders will sometimes require before they lend on a loan. This insurance product covers homes in case of flood and water damage during the time period a borrower lives in that home.
There are "flood maps" that show designated flood zones throughout a state. These flood zones tell insurance agents, mortgage loan officers, lenders, appraisers, title companies, and other people within the home financing industry where floods are more likely to happen. If a borrower is in the process of buying a home that is in a flood zone, mortgage lenders will require that flood insurance be added to a borrowers homeowners insurance.
These flood zones are federally designated, so everyone involved has the same information as to which areas will require extra insurance.
According to Forbes.com and the NFIP just one inch of water could cause up to $25,000 worth of damage. According to the National Flood Insurance Program, the average claim payout (2019) was $52,000. So, if you find yourself in a situation where flood insurance is required, remember that it's better to spend a few extra dollars to be protected, versus finding yourself in a lot of debt.
Here's some good news for borrower's looking to purchase in the state of Utah. Utah is considered a "desert state", which means that although there are a few areas that would require flood insurance, there aren't many.
Please give me a call and lets chat more about where your desired home is located, and what the best steps are to help you be able to purchase that home.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
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