Is there any way to avoid having to pay your flood insurance a year in advance when you buy a house?

Question

If they wont do that then can you at least wrap it into your mortgage?

Answer 1

If your mortgage company is willing to escrow, then you only have to pay the FIRST year in advance, and the mortgage company will pay it from then on, out of the escrow account.

Flood insurance is ALWAYS paid in advance, as it's controlled by the National Flood Insurance Plan, and rates and rules are set in advance. If you cancel your policy in the middle of the year, for example, you don't get ANY Money back unless you can prove you sold the property.

Hope that helps.

Answer 2

First of all if there is a need of "flood insurance" have you not heard of what happened in New Orleans in August 2005? I'd buy elsewhere. 100 yr "Flood Zones" means there is a 1% chance annually that there will be a flood, not once every 100 yrs. That is greater odds of a flood than winning the lottery.

It is a lenders call or decision if there is to be flood insurance, not yours. If the FEMA maps indicate you are in the flood plain, you will have to have it unless the maps are updated and your property is removed or if the flood plain crosses a portion of the yard but touches not the house and the main floor elevation is 2-3 ft above the flood plain elevation, you may not have to have it. Again the lender will make that call, not you. When you not longer have a mortgage you may then insure the home as you like. But choose wisely, many in New Orleans did not maintain flood insurance and today have no home.

However since you are buying this house, you have to pre-pay homeowner's insurance up front for the first year- period. That means standard and/or flood insurance, then as the year rolls on you are paying a portion (1/12th) monthly for the next premium due date. DO NOT FINANCE the first yr premium, it gets real expensive over 30 yrs for that first year coverage.

Answer 3

No you cannot avoid that unfortunately, I purchase a house 2 yrs. ago and I had to buy the flood ins. but after i year you don't have to have it anymore..

Answer 4

Find a house that isn't in a flood zone.