New levee designations mean questions for lenders and realtors
When the level of protection provided by a levee is under review, real estate transactions may be affected if the situation is not fully understood. To avoid problems, make sure local real estate and lending communities are kept informed about changes in levee designations and how issues of safety and long-term levee viability are being addressed. They, in turn, can inform their clients.
Flood insurance is strongly recommended near all levees
A Provisionally Accredited Levee designation does not change the federal flood insurance requirements. However, flood insurance protects against the financial devastation that can occur if a levee does fail. For this reason, FEMA recommends flood insurance for all properties in areas near levees. Many property owners and renters in low- to moderate-risk areas will be eligible for low-cost Preferred Risk Policies.
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