Flood insurance canceled where my rental home is.

Get HELOC and buy more houses / expand?

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Get HELOC and buy more houses / expand?

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My bank says I cannot use the equity of a rental home. Is this normal procedure or should I look elsewhere?

Any recommendations? I would love to be able to keep both homes and buy the condo as well. I jus feel like at this type of margin, it's an amazing opportunity.

Yes, it will go down significantly if they changed it from a flood zone to a none hazard zone. May not cost you $132 a year. If you keep the property and are worried about flooding, I would get a new quote.

Ok. That letter is from your lender, not your insurer correct? Lender is informing you that you’ve been remapped and no longer required to carry flood insurance. They’re removing cost for flood premium from your mortgage’s escrow. The refund is for the amount you’ve paid into escrow for the past few months for flood insurance. In the future, you’ll be paying flood insurance out of pocket if you want to keep it and it won’t be factored into mortgage.

As long as the property hasnt had multiple prior flood claims, you should qualify for preferred risk policy which would run $550-675 range for a rental depending on amount of coverage. If you haven’t also gotten a refund from your insurer, contact your agent to check into it. If you qualify for PRP then insurer should cancel old policy and re-issue as PRP with premium difference being refunded to you

Should expect the mortgage payment to drop around that amount. May not be exactly $116 depending on if there’s been any recent change in hazard insurance or property tax costs.

Contact your Farm Bureau agent and let them know about the letter you got from Regions and ask them to have your flood policy re-rated if it hasnt been already so that you can take advantage of the lower rates due to rezoning.

Then if you want to keep flood insurance in the future, you’ll just have to make the annual renewal payment yourself since Regions won’t be anymore. If you moved into a B/C/X zone and the house hasnt ever had more than 1 flood claim, then you should qualify for a Preferred Risk Policy which would get you the lowest flood rates.

Sounds like your lender had a policy for flood that only covered what they lent you initially on it. As was previously stated, your policy will get much cheaper.

I would suggest-strongly-that you maintain your coverage and add contents to it at the full value of the property. When you keep flood insurance on a property when you’re not in an flood zone, you have two things working for you:

1.) If at some point in the future a map update occurs and you’re shown to be again in a flood zone, you can continue to pay the subsidized rate if you prove to whomever writes it that you had the policy in place prior to the map revision putting you back in.

2.) You can pass this subsidized cost on to any prospective homebuyer if and when you do sell the home if you get put back into the flood zone. Which means if you sell a home and your neighbor does too, even with similar amenities and location, your cost of ownership is much lower due to being able to transfer the benefit of the reduced cost of the flood insurance policy to them while the neighboring property would not. In a sense it becomes a sales feature that will attractive homebuyers.

Good luck.

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We have deleted the flood insurance from your escrow account. Your mortgage payment has been adjusted so that we are no longer collecting for flood insurance. This reduction will be reflected on your next payment advice. If the payment is currently made through Auto Draft, the change will automatically occur within two cycles. A check, of $897 is enclosed in the amount collected for the flood insurance premium but have not disbursed."

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That doesn't say your flood insurance is cancelled though. Just that the lender isn't escrowing it anymore because it isn't required by the lender.