Wai Halana Page 8

Dept. of Land and Natural Resources
Engineering Division
P.O. BOX 373
Honolulu, Hawaii 96809

Board of Land and Natural Resources

Laura H. Thielen, Chairperson
Timothy E. Johns
Dr. Samuel Gon II
Robert Pacheco
Jerry Edlao
Taryn Schuman
Ron Agor

FLOOD INSURANCE POLICIES:

Questions to Ask Your Real Estate Agent

Real estate professionals have built a business around educating clients on market conditions and homes. By doing a little bit of homework and talking with your real estate agent, you can make better decisions for you and your family.

What is my property’s flood risk?
It's important to know what type of risk you are buying into. Even if you aren't buying a home along the ocean or river, it can still be at risk for flooding. Hawaii Residents can estimate their property's flood risk online by using the Hawaii Flood Hazard Assessment Tool (FHAT). See article on page 1 for more details.

Is flood insurance mandatory for my property? Will the lender require it?
The purchase of flood insurance is mandatory for all federal or federally regulated financial assistance for the acquisition and/or construction of buildings in high-risk flood areas (Special Flood Hazard Areas or SFHAs). In highrisk flood zones, flood insurance must be maintained during the term of the loan or for the lesser of the maximum amount of available NFIP coverage (currently $250,000) or the outstanding principal balance of the loan (less the land value). The insurance must be in place before the loan can be closed.

If the property is not in a high-risk area, but is in a low-to-moderate risk area instead, the law does not require flood insurance. However, it is recommended since historically about one-in-four flood claims come from these low-tomoderate risk areas. Note that if during the life of the loan the maps are revised and the property is now in the highrisk area, your lender will notify you that you must purchase flood insurance.

Source: Floodsmart.gov
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