Environmental

A Wisconsin property located in a Special Flood Hazard Area (SFHA) has which of the following requirements?

AThe owner must purchase flood insurance if a federally backed mortgage is involved✓ Correct
BThe property cannot be sold until the flood hazard is mitigated
CThe lender must waive the flood zone disclosure requirement
DAll flood insurance is automatically covered under standard homeowner's policies

Explanation

Lenders making federally related mortgage loans on properties in SFHAs (flood zones) are required by federal law to mandate that the borrower purchase flood insurance through the National Flood Insurance Program (NFIP).

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