Nearly all banks and mortgage lenders have a federally-imposed requirement to ensure that a flood insurance policy is in place for all loans they make for homes or buildings in the "Special Flood Hazard Area."

Lenders are required to evaluate the status of properties they lend to. When there is doubt about the status of individual home or building, most lenders err on the side of requiring insurance. For that reason, even property owners who think they are close to but out of the "Special Flood Hazard Area" could be faced with a mandatory flood insurance requirement.

Most lenders will acknowledge verifications of floodplain status when issued by FEMA as a "Letter of Map Amendment."