Is Flood Insurance Required with a Reverse Mortgage?
- FloodPrice
- Jul 14
- 3 min read
If your home is in a Special Flood Hazard Area (SFHA) and your reverse mortgage is backed by the federal government, then yes, flood insurance is usually required.
Most HECM (Home Equity Conversion Mortgage) reverse mortgages follow the same federal flood insurance requirements that apply to traditional federally backed mortgages.
If your home is not located in a high-risk flood zone, flood insurance may not be required. If in doubt, homeowners should still consider flood coverage because flooding can happen almost anywhere. Low risk does not mean no risk.
Learn more about flood zones in our Flood Zone & Risk Guide.
How Do Lenders Determine If Flood Insurance Is Required?
Before approving a reverse mortgage, lenders determine whether your home is located within a FEMA-designated flood zone.
They typically review:
FEMA Flood Insurance Rate Maps (FIRMs)
Your property's location
Flood zone designation
If your property falls within a high-risk flood zone, you'll generally need an active flood insurance policy before the loan can close.
You can check your property's flood zone using our Flood Zone Lookup Tool.
What Happens If You Let Your Flood Insurance Lapse?
Keeping your flood insurance active is an important part of maintaining a reverse mortgage when coverage is required.
If your policy lapses, your loan servicer may:
Notify you that coverage has expired
Require you to obtain a new policy
Purchase force-placed flood insurance on your behalf (if permitted)
Force-placed flood insurance can be more expensive and may provide different coverage than a policy you choose yourself.
Maintaining continuous coverage helps avoid unnecessary costs and complications.
Do All Reverse Mortgages Require Flood Insurance?
No. Whether flood insurance is required depends primarily on your property's flood risk, not simply the type of mortgage you have.
For example:
Homes in high-risk flood zones typically require flood insurance for federally backed reverse mortgages.
Homes in moderate- or low-risk flood zones may not be required to carry flood insurance, although many homeowners still choose coverage for added protection.
Flood risk can also change over time as FEMA updates flood maps.
Learn more in Does Your Flood Insurance Go Up If FEMA Rezones?
Can You Choose Private Flood Insurance Instead of NFIP?
FloodPrice’s private flood insurance fulfills lender requirements and can offer broader coverage options than the NFIP.
Many homeowners compare:
National Flood Insurance Program (NFIP) policies
Private flood insurance
Private flood insurance may offer:
Higher coverage limits
Additional coverage options
Competitive pricing for some properties
Learn more in NFIP vs Private Flood Insurance.
Want to compare both right now and see which can save you money on flood insurance?
How Much Does Flood Insurance Cost?
Flood insurance premiums vary based on several factors, including:
Flood zone
Elevation
Property characteristics
Coverage amount
Location
Homes located in higher-risk flood zones generally have higher premiums than homes in lower-risk areas.
The only way to know your actual premium is to get an online quote.
Protect Your Home and Your Reverse Mortgage
If you have a reverse mortgage, or are considering one, understanding your flood insurance requirements can help you avoid delays, maintain your loan, and protect your home from costly flood damage.
Whether flood insurance is required or optional, comparing your options is one of the best ways to understand what coverage is available for your property.
You can compare NFIP and private flood insurance quotes in minutes with our online quote tool.
Disclaimer: The information on this site is provided for general guidance and informational purposes only. We make no guarantees regarding the completeness or reliability of the content. All liability for any reliance on the information is expressly disclaimed.
