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Originally Posted by cj1040
No one disclosed to us when we selected a pond lot in Chitty Chatty that this could be an issue. After our planning meetings, payment of 20 % we spoke with the bank about a mortgage and were told that we would have to carry flood insurance which DOUBLES our home insurance cost. We are very angry about this. We could have chosen a different lot if we had known. We were told that in a couple of years the area may be resurveyed and that FEMA would send a letter if it is no longer classified this way. Then we have to fight with the mortgage company to have this requirement dismissed. As for now it states "for the life of the loan ". Watch out if you are purchasing a pond lot. Has anyone else had this experience?
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Flood insurance is available from the federal government if you are in a designated flood zone. You can apply for this insurance through many commercial insurance companies and the premiums are fixed based on the zone. Your plot plan designates your elevation level and that determines which level you require. Which flood zone level your I’m determines the premium you pay but there is a deductible. Your bank no doubt wants more coverage but you in my opinion should only get the difference in coverage between what the government flood insurance covers and what your bank is requiring.