Environmental
In New Mexico, a property in a flood plain is required by lenders to carry:
AStandard homeowner's insurance only
BFederal flood insurance (NFIP) if the property is in a Special Flood Hazard Area (SFHA) and the loan is federally backed✓ Correct
CEarthquake insurance
DWindstorm insurance
Explanation
Federal law requires flood insurance for properties in FEMA-designated Special Flood Hazard Areas (SFHAs) when the loan is made by a federally regulated lender. This is separate from standard homeowners insurance and provided through the National Flood Insurance Program (NFIP).
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