The lender will require flood insurance if the home is ________.

Lenders that make federally related loans must require flood insurance if the property is located in a Special Flood Hazard Area (SFHA), as designated by the Federal Emergency Management Agency (FEMA).

Flood insurance protects the lender’s collateral and the borrower’s investment.

The Maryland pre-licensing course covers flood hazards in the “Environmental Issues and Disclosures” unit.