No, but for several reasons we wouldn’t recommend cancelling your flood insurance policy:
- Flood insurance is often considerably cheaper with a LOMA.
- Lenders can still require you have flood insurance (see Mandatory Flood Insurance Requirement)
- Federal Emergency Management Agency (FEMA) Flood levels are "minimum" expected flood levels. Across the nation, flood waters frequently exceed these minimum expected flood heights and X-zone properties have been known to experience flood significant damage/claims.
- If you don’t have flood insurance, and your building or its contents are damaged during a flood, any FEMA disaster assistance you might be eligible for would be reduced by the amount of money you would have received from a claim if you had flood insurance coverage.
- Presently, there’s a cap on the annual rate increase for existing policies. However, if you let a policy lapse more than 30 days or reapply for coverage, the costs escalate dramatically to the full market rate.
- Your existing coverage might be transferable to a new buyer, if you kept the policy in effect. If you didn’t, then the costs to the buyer could be huge, and discourage them from purchasing your property.