I want to buy a house in Ocean City,Md, 21842. The mortgage is $1.5 mil how much will the flood ins cost?

Question

I know federal flood ins is $250K plus $100K tops but what if the mortgage holder wants full coverage?

Answer 1

Depends in great deal on what flood zone it is in.

Answer 2

If you're going to get something in Ocean City, I would highly recomend that you get a timeshare or something, unless you'e going to in that house constantly.

Answer 3

Then you can't get that mortgage.  

There IS no flood insurance, besides the NFIP one.  It underwrites ALL insurance in the USA.

That $250K is the max for the building.  The mortgage holder should know that, or you need to talk to their supervisor.

Or, maybe you just need to put a lot more down on the house.

There IS a policy you can get, maybe, with the higher flood limits - it's not a homeowners, though, it's a commercial policy.  The name of it is a "difference in conditions" form.  In order to get it, you ALSO have to have that NFIP policy with maximum limits.  

It's NOT CHEAP, and it's likely that, with a beach house, the company could refuse to write you, flat out.   Premiums for that form start at $50,000, with the carriers I'm familiar with.