Education FAQs >>

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If a lender, mortgage company or insurance agent says my property is in a Special Flood Hazard Area (SFHA), isn't it?
No, not necessarily. Lenders, mortgage companies, insurance agents and brokers count on contracted third parties to provide flood hazard determinations. These contracted third parties, generally, do not evaluate flood risk as thoroughly as FEMA would like, which leads to a very high rate of inaccuracies.
Who is eligible for a LOMA or LOMR?
A building or home that does not have a history of flooding and that meets criteria set forth by FEMA will qualify for a LOMA or LOMR.
Will a lender or mortgage company accept a LOMA or LOMR?
Yes, FEMA issues a LOMA or LOMR to evidence that your building or home is not in a SFHA. The LOMA or LOMR supersedes the determinations provided by third parties and removes the federal flood insurance requirement that the lender or mortgage company imposes.
What are the insurance options after obtaining a LOMA or LOMR for commercial property owners?
If you obtain a written waiver of the lender's flood insurance requirement and have not filed a flood claim in the current policy year, you may cancel the NFIP flood insurance policy and receive a refund of the premium paid in the current year. FZC suggests that you consult with your insurance broker about flood insurance options for buildings located in low-risk flood zones. Your existing property insurance policy may provide coverage.
What are the insurance options after obtaining a LOMA or LOMR for condominium associations?
The association has the right to discontinue flood insurance in the future. If the association chooses to discontinue coverage, the association may let the policies expire and not renew the policies, or, the association may pursue an insurance refund. If the association chooses to discontinue coverage, it should notify unit owners in advance and recommend that unit owners send the LOMA or LOMR to their mortgage companies to update loan records noting that the respective unit is no longer in the SFHA and to eliminate the flood insurance requirement. This ensures unit owners comply with their mortgage terms and provides unit owners with an opportunity to buy their own flood policies if desired.
How much can a commercial property owner expect to save?
The average commercial property owner saves $10,000 every year per property, which may add $140,000 of new value to the property that may be captured at refinance or disposition by capitalizing the new earnings.
How much can a condominium association expect to save?
The average condominium association saves $15,000 every year, which significantly improves capital reserves for the condominium community.
I'm selling soon, so why bother?
By eliminating the requirement to maintain flood insurance, buildings, condominium units and homes become less expensive to own and operate, increase in value and become more attractive to buyers.
How long does the flood zone correction process take?
Three months to a year. FZC suggests that you start the process with a flood risk analysis at least six months prior to your next flood insurance policy renewal date.
Special note for residential property owners: We welcome you to our site and your interest in flood risk. Please be advised that at this time, our services are limited to commercial properties, condominium associations, as well as, related third parties.