Does conventional require flood insurance?

Federal law requires flood insurance on properties in SFHA Zones for federally-related financing — conventional included. Two conventional-specific rules sit on top of that. First, Fannie Mae's Selling Guide (B7-3-06) requires flood insurance for a property in a Coastal Barrier Resources System area or an Otherwise Protected Area regardless of whether the property is located in an SFHA — so on a conventional file a CBRS designation raises the insurance requirement rather than the financing bar the Coastal Barrier Resources Act creates for VA and FHA loans in the same areas. Second, the required coverage is the lesser of 100% of the insurable replacement cost value, the maximum coverage available under the NFIP, or the unpaid principal balance of the loan. Florida's flood maps shift periodically, so confirm both the zone and any CBRS designation before writing on a Florida property. Private flood insurance has grown as a complement or alternative to NFIP — conventional accepts both subject to coverage standards and lender approval.

Florida insurance premiums, property tax millage and Save Our Homes rules, county property-appraiser practice, HOA dues, CDD fees, and condo law can change the answer.