NLIC.org

Melinda Said:

What is the lowest possible amount a mortgage company will allow you to insure a house for flood insurance?

We Answered:

It is for the same amount as your fire insurance policy, up to the maximum amount of coverage insurable under FEMA rules. This coverage is based (or should be based) on the replacement cost of your home, but can be based on the amount of your mortgage loan if that is the lower. If your house is in a Flood Zone A or V, this flood insurance coverage is expensive and will cost you about twice as much as your fire/comprehensive policy. However, if you are in Flood Zones A or V (meaning there is a 1% possibility that the land will flood by 1 foot or more in any one year), then a bank granting or holding your loan is required by law to assure that this insurance is in place and they even have to check that every year. And that law has teeth in it. I think in many places it is a rip-off as it basically pays for the damage of the people with land below the water level in the Mississippi Valley and flood prone areas along seashores.

However, if your home is even slightly elevated on a mini hill (say 2 feet above street grade, then you have a good chance to have a licensensed civil engineer or surveyor survey the property and get the house out of the flood plain. That is done by FEMA with a Letter of Map Amendment (LOMA) and would eliminate the flood insurance requirement. The cost is about $500 to $1,000 to prepare the documentation and FEMA application and it takes about 2 months to get approved.

Holly Said:

How much does it cost to buy a house?

We Answered:

For renters, you have rent, utilities, renters insurance and maybe some fees.
For homes you have mortgage , taxes, mortgage insurance, homeowners insurance, homeowner association fees, repairs and the proud factor. Home owners insurance usually runs two to three times your rental insurance. Ask about replacement value. Utilities increase by the square footage.
Repairs and the proud factor are the two things nobody budgets for. When you rent, you may get a planter. When you buy, you will be at the garden center every weekend. 10,000 is not unheard of by some people. Things break. My wife turned the furnace off while she was packing for florida. She forgot to turn it back on and froze all the water pipes. Insurance paid for some, but not all.

After adding up all the things you can list. Add 10% for the things you missed.

Perry Said:

How much a rental house property insurance should cost?

We Answered:

You can approach this one of two ways.

1 - Get a rider on your current homeowners policy (the one on your house) to cover the rental property you have. Not all insurance carrier provide this but some allow you to have up to 2 rental properties added on to your regular home policy. This rider will cover the structure and public areas in case someone slips and falls outside, etc.

2 - call around for a landlord policy (not renters policy). This is a separate policy that will cover the same things as the policy rider above.

Good Luck!