My home is located in a Special Flood Hazard Area (SFHA). I am thinking about obtaining a home equity loan. Will I be required to have flood insurance?
Yes. Flood insurance will be required if the home equity loan is secured by a building or mobile home located, or to be located, in an SFHA in which flood insurance is available under the National Flood Insurance Act.
If you already have a mortgage loan on your home, but you do not currently have flood insurance coverage, the home equity lender may combine the amounts of both the mortgage loan and the home equity loan when determining the amount of flood insurance coverage you will be required to purchase.
Refer to 42 USC 50 "National Flood Insurance Act."
Last Reviewed: October 2020
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