Real Estate: New York/Flood insurance

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Question
FEMA recently announced that they will be re-drawing their flood zone maps, and my neighborhood (Mill Basin, Brooklyn) will probably be placed into zone "A". I currently carry no flood insurance, and my mortgage bank did not previously require me to carry flood insurance as a condition of my mortgage. My mortgage is through a commercial bank; it is not through FHA or other federal loan program.

Notwithstanding the wisdom of purchasing flood insurance post Sandy, my questions are:

--can my mortgage bank obligate me to purchase flood insurance if the previous loan provisions did not require doing so?

--would my best flood insurance value be through FEMA-NFIP

--would FEMA's Preferred Risk Policy Eligibility Extension apply to me, or would I be grandfathered into some other premium reduction in order to get the preferred rather than the standard premium rate?

Many thanks in advance...

Answer
Unfortunately, in most cases there is writing in the original loan document that would allow the bank to require some type of insurance if you have been rezoned to a flood zone.  I have seen it before with some areas of the north shore of long island, where houses near the long island sound were rezoned as flood.  You should read your loan docs to see if that provision is in there, usually in an insurance provision.  I see it in most documents.  

I may be wrong, and you could be immune based on the language of the document.  So I would not suggest asking the bank, because you may inadvertently remind them.  

As for which insurance is best, I'm not the best person to answer that.  If your bank does end up asking for coverage, they will likely as for a minimum coverage type.  When they tell you, you can then seek the best possible value in your choice.   

I hope this helps.

Mark  

Real Estate: New York

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Mark Shemel

Expertise

I believe I can answer questions in the following sub categories with respect to New York City: Residential Brokerage, Landlord Tenant disputes, Any type of lease questions, any definition pertaining to residential real estate, any questions about property management, most questions about development, construction codes, and housing laws, questions about Section 8, HPD and government sponsored housing. Also corporate and short term housing questions.

Experience

I am currently the President of Think Properties NYC, a residential brokerage firm in New York City. I am also President of National Property Management Group. We manage over 1000 Residential Units and 50 retail/commercial units, generally as tax payers or part of mixed use buildings. We handle project management, marketing, and rentals/sales of new construction properties as well.

Organizations
The Real Estate Board of New York (REBNY), Boutique Brokerage Firm Alliance (President)

Publications
New York Times, Real Estate Weekly, Wikipedia, Wiki-answers

Education/Credentials
Undergrad: Union College Degree: Bachelors Degree, Double Major Economics/French Graduate: New York University Degree: Masters of Science, Masters in Real Estate Development Licensed Real Estate Broker in State of New York

Awards and Honors
Undergrad: Phi Beta Kappa, National Honor Society, Magna Cum Laude

Past/Present Clients
Oakwood Worldwide, JP Morgan Chase (for Relocation), and several other firms.

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