> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Flood Insurance Policy for Subject Property

> Provide the current flood insurance policy for the subject property when it is located in a special flood hazard area.

## What this task is

This task collects the **subject property’s flood insurance policy** when the property is located in a **special flood hazard area**.
The policy should show:

* The **insured property address**,
* **Coverage limits and types**, and
* The **annual or monthly premium** and policy term.

The document is used to confirm that **required flood coverage is in place** and to support accurate calculation of the borrower’s **housing expenses**.

## When this task is required

This task is required when:

* The subject property is identified as being in a **special flood hazard area**, and
* **Flood insurance is required** by regulation, investor guidelines, or lender policy.

It is relevant for both **purchase and refinance** loans wherever mandatory flood coverage applies.

## Why this task is required

Flood risk is a **material factor** in the safety and soundness of a mortgage loan:

* Federal regulations and many investors require **flood insurance** when a property lies in certain flood zones.
* The flood premium is part of the borrower’s **PITIA** (see [PITIA](/entity-models/key-concepts/piti)), affecting affordability and [DTI](/entity-models/key-concepts/dti) ratios.
* Adequate coverage protects both the **borrower and lender** from catastrophic loss due to flooding.

Without clear documentation of flood coverage, the lender may be out of compliance with **federal requirements**, and the loan could be **ineligible for sale or delivery**.

## Documents needed to resolve this task

To satisfy this task, provide:

* The **current flood insurance policy or declarations page** for the subject property:
  * Showing **property address**, **insured parties**, **coverage limits**, **deductible**, and **effective dates**.
  * Displaying the **annual premium** or sufficient information to derive the cost.
* If flood coverage is provided under a **master or association policy**, provide:
  * The **relevant portion of the master policy** that applies to the unit or building.
  * Any **evidence of coverage letters** or certificates that tie the subject property to the master policy.

These documents allow the underwriter to confirm both **regulatory compliance** and accurate inclusion of flood expenses in the borrower's total housing cost.