Quick answer
If a home with a federally backed or regulated mortgage is in a FEMA special flood hazard area, the lender will require flood insurance, and the premium is often paid monthly through escrow. Check the flood map before you make an offer so the cost is in your budget.
Key takeaways
- Look up the address on FEMA's Flood Map Service Center before you make an offer. Check the map early
- Flood premiums are often collected monthly through the escrow account along with taxes and homeowners insurance, which raises the monthly payment. How the premium is paid
- Standard homeowners policies generally exclude flood damage. Homeowners insurance does not cover floods
When it is required
Lenders must require flood insurance on homes in special flood hazard areas shown on FEMA flood maps when the mortgage is from a federally regulated or insured lender or backed by a federal program. Outside those areas, flood insurance is optional but can still be worth considering.
Check the map early
Look up the address on FEMA's Flood Map Service Center before you make an offer. The lender also orders a flood zone determination during the loan process.
How the premium is paid
Flood premiums are often collected monthly through the escrow account along with taxes and homeowners insurance, which raises the monthly payment. FloodSmart, run by the National Flood Insurance Program, explains coverage and how to get a quote.
Homeowners insurance does not cover floods
Standard homeowners policies generally exclude flood damage. That is why flood coverage is a separate policy.
If coverage lapses
If required flood insurance lapses, the servicer can buy coverage for you, often at higher cost. The CFPB explains force-placed insurance and how to avoid it.
Map changes
FEMA updates flood maps over time. A home can be remapped into or out of a special flood hazard area after you buy, which can add or remove the requirement. Your servicer will notify you if a map change affects your loan.
Add it to your estimate
The payment calculator on this site lets you enter insurance costs. Include the flood premium quote so your estimate reflects the full payment.
Sources
- FEMA Flood Map Service Center
- FloodSmart (National Flood Insurance Program)
- CFPB: What is force-placed insurance?
Sources reviewed . General education only; confirm current rules with official sources and a licensed lender.