Possible purchase of a property in a flood prone area

[Mario Ruscovici]

I am about two weeks away from possibly closing on a duplex in a flood prone area on the south east Atlantic coast.  The price is reasonable and meets the 1% rule.  I have three issues on which I would welcome any feed back.  First, if there is a flood between now and the closing date, it seems like  the seller may have a property policy and a flood policy, but after closing, those policies will not cover any damage incurred prior to the flood, for me, the new owner.  Should I ask seller for "assignment of benefits" and to get those policy numbers now, call the insurers, and make sure that they will pay me for property losses if I decide to go forward with the deal? Second, all I have at risk of losing if I walk away from the deal is the cost of inspection and appraisal.  Maybe it is better to look for properties more inland? Third, the lender, which is hard money, has asked me to comment on a police report with incidents (all traffic related and mostly speeding), going back about fifteen years.  Although I have nothing to hide, this request seems disrespectful.  However it is unrealistic to find a new lender with less than two weeks to go.  Comments? Advice? Insights? Thank you!

[Caroline Gerardo]

Hard money lender is giving you his/her own cash. They can ask what they want, write the letter. 

NO flood policy is assignable. Get a quote for your own flood AND hazard policies which start on the day you close. Insurance is a cost you factor in over long term. Flood is going to happen, at some worst unknown time. If you don't have flood insurance you could lose the structure and no city/county/state does free clean up.