Finance
A Minnesota property is in a designated Special Flood Hazard Area (SFHA). The lender requires the buyer to purchase:
AAdditional title insurance for flood-related title claims
BFlood insurance through the National Flood Insurance Program (NFIP) or approved private insurer✓ Correct
CA structural engineering report on flood resilience
DA surety bond for potential flood damages
Explanation
Federal law (Flood Disaster Protection Act) requires lenders to mandate flood insurance for properties in SFHA (100-year flood plain) that are securing federally backed mortgages. Minnesota has numerous properties in flood plains, particularly near the Mississippi River and its tributaries.
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