LETTER OF MAP AMENDMENT

Are you required to purchase flood insurance? Federal law mandates that most federally backed mortgages be protected by flood insurance, for the life of the loan, if the mortgaged property is mapped within a Special Flood Hazard Area (SFHA). But what if the map is incorrect or your structure is above the base flood elevation? FEMA allows map changes through map amendments and revisions which will usually alleviate the requirement to purchase flood insurance. If a structure meets certain FEMA risk criteria to be deemed "Minimal Risk," a Letter of Map Amendment, or LOMA, can be applied for.  A LOMA is a FEMA document which states that while a structure, or portion of property, is mapped within the SFHA, it is not at significant risk for flooding based on the elevation of the structure or portion of the property. The LOMA process involves professional surveyors and engineers gathering technical data for analysis of a structure's true flood risk, compiling the information, and submitting the required documents to FEMA. Once the property is successfully classified as “Minimal Risk,” lenders are no longer require to maintain flood insurance on the loan, usually allowing the property owner to remove the costly coverage from their insurance policy, or decreasing the rates significantly.

Adams Construction and Associates, Inc (ACAI) uses an abundance of criteria when exploring a LOMA request. The process usually includes a survey, flood risk assessment, and a number of FEMA documents. Upon completion of the field survey, ACAI can better determine if a particular property or structure qualifies as "Minimal Risk." ACAI will then issue a LOMA request to FEMA for approval, with a typical 45-60 day response time. Consult your agent and lender to see if a LOMA could benefit you, and call ACAI to begin your LOMA today!