Friday December 01, 2023 12:56 pm - 498 Views - Posted By Recovery Assistance & Mitigation Planning
Department of Planning and Zoning
Recovery Assistance and Mitigation Planning
Do You Need Flood Insurance?
New Flood Maps Expanded the Floodplain in Terrebonne.
Send Proof of Insurance to Mortgage Holders
September 7th Terrebonne Parish adopted the new FEMA flood maps. These are the first new maps since 1985. Some portions of the Parish are no longer considered subject to wave action and therefore are eligible for federal programs they couldn’t use before. Other structures are newly mapped into the floodplain. If you don’t know if your house is in or out of the floodplain, visit http://maps.lsuagcenter.com/floodmaps/?FIPS=22109 and enter the address or call 873-6567 to ask the Floodplain Administrator for Terrebonne Parish.
Federal law requires that federally backed loans for structures in the floodplain are protected with a flood insurance policy worth at least the value of the loan. Banks and mortgage lenders are responsible for ensuring that those flood insurance policies are in place. Home and business owners may receive documentation from mortgage holders requesting the flood declaration page. If the owner provides proof of flood insurance the company will take no further action. If proof of flood insurance is not provided in the timeframe requested, the mortgage company will buy a policy for the structure and add the cost to the escrow account. This is called a “force placed” policy and it could be more expensive than the policy an owner might purchase.
Due to privacy laws, the National Flood Insurance Program will not tell the lender if a policy is already in place. The policy could be purchased by the lender as if there is no current flood coverage whether there is or not. This may be a higher Risk Rating 2.0 rate. Some residents saw a ~ 600% increase in the policy force placed v. the one they already had.
Take steps to protect your finances and structures.
Determine if the building is in the floodplain
Buy or get a copy of the policy declaration to prove flood insurance coverage
Provide that proof of flood coverage to the lender/s
Confirm that the coverage meets the lender’s requirements and get notification in writing.