We recommend you consider purchasing flood insurance if you want to close without waiting 6–8 weeks for the LOMA or LOMR-F to be issued. Review this with your loan officer or your insurance agent first.
Savings Tip: Usually (not always), you can get a partial or a complete refund. Please read this quote from the Flood Insurance Manual, Pages CN I and 2:
- “INSURANCE NO LONGER REQUIRED BY MORTGAGEE BECAUSE PROPERTY IS NO LONGER LOCATED IN A SPECIAL FLOOD HAZARD AREA- Flood insurance was initially required by the mortgagee or other lender because the property was determined to be in a SFHA. Following a map revision, the property was no longer located in a SFHA. A policy can be cancelled provided that the mortgagee confirms in writing that:
(1) the insurance was required as part of the mortgage; and
(2) the mortgagee requirement for flood insurance no longer applies.
Providing no [flood insurance] claim has been paid or is pending, the full premium shall be refunded for the current policy year, and for an additional policy year in those cases where the insured had been required to renew the policy during the period when a revised map was being reprinted. IF A CLAIM HAS BEEN PAID OR IS PENDING, NO REFUND IS ALLOWED.”