Small loan balance remaining – is flood insurance required anymore?

Answered by:

Question:

Is flood insurance still required on a loan where the balance has fallen below $5,000?

Answer:

Yes. The $5,000 flood loan exemption only applies to loans with an original principal balance below $5,000 AND a repayment term of 1 year or less. A loan that pays down below $5,000 is not eligible, even if the remaining term is under 1 year.

Want to know what IS exempted from flood insurance coverage? Tune into the upcoming webinar “Flood Compliance is Me$$y” on October 25, 2023 to dive in deeper!

-----------------

Learn more about Rebekah Leonard's, Flood Compliance is Me$$y
webinar.