Many lenders require borrowers to carry flood insurance on their homes/cabins because of a perceived risk of flooding based on Flood Insurance Rate Maps (FIRM) prepared by FEMA.
Many of the FIRM maps in northerneastern Minnesota are constructed from incomplete or incorrect information and frequently place low risk homes in a Special Flood Hazard Area. When this occurs FEMA requires lenders to, in turn, require borrowers to purchase flood insurance. Many times this determination is in error and the homeowner is forced to buy flood insurance that they don't need.
A licensed surveyor can help you avoid paying for unnecessary flood insurance by certifying to the elevation of your home by completing and submitting a MT-EZ form. If the MT-EZ form is approved, FEMA will issue a Letter of Map Adjustment or LOMA. This can result in a savings of tens of thousands of dollars over the course of a normal loan.