FLOOD INSURANCE ANSWERS AND QUESTIONS SET
A+
✔✔Institutions may charge a fee for life-of-loan monitoring. - ✔✔T
✔✔Which are exempt from flood insurance requirements? - ✔✔Travel trailers
✔✔For one- to four-family residential property structures, the maximum amount of
coverage is: - ✔✔$250,000
✔✔A Special Flood Hazard Area (SFHA) is any area that the director of FEMA
determines has at least a ______ percent chance of flooding in a given year. - ✔✔One
% percent
✔✔If the property securing a loan lies in an SFHA, it is the borrower's responsibility to
notify the institution of that fact. - ✔✔F
✔✔Flood insurance is required for the term of the loan on buildings or mobile homes
when: - ✔✔--Your financial institution makes, increases, extends, or renews any loan
secured by improved real estate or a mobile home that is affixed to a permanent
foundation, and the property securing the loan is located in, or will be located in, a
Special Flood Hazard Area as identified by FEMA
--The community participates in the NFIP
---The property securing the loan is (or will be) located in a Special Flood Hazard Area
(SFHA), as identified by FEMA
✔✔It is the customer's responsibility to ensure that flood insurance remains in place for
the term of the loan, and the lender is not required to monitor this. - ✔✔F
✔✔The requirement to escrow all premiums and fees for flood insurance applies to: -
✔✔Home equity lines of credit (HELOCs)
Loans with a business, commercial, or agricultural purpose
Construction or temporary financing loans with a term of less than 12 months
A+
✔✔Institutions may charge a fee for life-of-loan monitoring. - ✔✔T
✔✔Which are exempt from flood insurance requirements? - ✔✔Travel trailers
✔✔For one- to four-family residential property structures, the maximum amount of
coverage is: - ✔✔$250,000
✔✔A Special Flood Hazard Area (SFHA) is any area that the director of FEMA
determines has at least a ______ percent chance of flooding in a given year. - ✔✔One
% percent
✔✔If the property securing a loan lies in an SFHA, it is the borrower's responsibility to
notify the institution of that fact. - ✔✔F
✔✔Flood insurance is required for the term of the loan on buildings or mobile homes
when: - ✔✔--Your financial institution makes, increases, extends, or renews any loan
secured by improved real estate or a mobile home that is affixed to a permanent
foundation, and the property securing the loan is located in, or will be located in, a
Special Flood Hazard Area as identified by FEMA
--The community participates in the NFIP
---The property securing the loan is (or will be) located in a Special Flood Hazard Area
(SFHA), as identified by FEMA
✔✔It is the customer's responsibility to ensure that flood insurance remains in place for
the term of the loan, and the lender is not required to monitor this. - ✔✔F
✔✔The requirement to escrow all premiums and fees for flood insurance applies to: -
✔✔Home equity lines of credit (HELOCs)
Loans with a business, commercial, or agricultural purpose
Construction or temporary financing loans with a term of less than 12 months
