Property Ownership

Property Ownership Practice Question

Under federal flood insurance requirements, properties in Special Flood Hazard Areas with federally backed mortgages must:
A
Be elevated above flood level
B
Have flood insurance
C
Have a basement
D
Be waterproofed
Explanation

The National Flood Insurance Act requires that properties located in Special Flood Hazard Areas (zones A and V) with federally backed mortgages must have flood insurance. Lenders must escrow flood insurance premiums and force-place coverage if the borrower fails to maintain it.

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