1. BAnk won't let you use their money to buy a house if it is not insured.
2. The bank can not SELL your mortgage unless the house is insured.
3. To prevent the bank from foreclosing because the home owner let the insurance laspe.
Now, if you willl, imagine what the ramifcations are regarding existing homes. in a FEMA designated flood zone, occupied for years by the owner who in the next 5 years will get flood insurance premiums that are 250 times the current premium. In many cases, four years of premium payments will exceed the value of the 1963, 3/2/2 rancher home with that awesome big water view.
Then there's always that pesky situation where helpful but crazy Uncle Bill fell on his head from the back of the U-Haul truck.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor FL
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