Flood Map Revision
Answer by Randy Carey, BOL Guru Guru Bio
Question: I have a client who built a house that was not in a special flood hazard area (SFHA) at the time of inception. Due to a map revision, the structure is now located in a SFHA. What are the notification requirements and does the 45 day requirement before force placing insurance apply as it would if the flood insurance policy lapsed?
Answer: The bank should notifiy the borrower that the property now is in a SFHA and give them 45 days to obtain insurance. The borrower can obtain flood insurance and the 30-day waiting period on the effective date will be waived. If the borrower does not provide proof of insurance by the 46th day, the bank has to forceplace insurance at that time.
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