Environmental

A Florida coastal property is subject to FEMA's National Flood Insurance Program (NFIP). Properties in participating communities with federally backed mortgages in Special Flood Hazard Areas must carry flood insurance with coverage up to at least:

AThe property's market value
BThe outstanding mortgage balance or the NFIP building coverage maximum, whichever is less✓ Correct
CA fixed $100,000 minimum
DThe property's assessed value

Explanation

NFIP requires flood insurance coverage equal to at least the lesser of: (1) the outstanding mortgage balance, (2) the NFIP maximum building coverage ($250,000 for residential), or (3) the insurable value of the building. The lender monitors compliance.

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