my condo bldg was identified to be in a flood hazard area just weeks before closing

Sadly, yes. These lines were re-drawn a couple of years ago (post-Katrina), and if something was already in the pipeline by then it's possible the developers overlooked it.

But don't despair. The insurance doesn't cost a fortune, and in case of disaster you will be covered. The bigger issue I have found is getting your standard homeowner's insurance to cover you if you're in the flood zone. Even though they're not covering the flood insurance itself! Who tipped you off? The bank or your primary insurer?

coverdrive,

Just curious, which area is your flood zone?

When the bank promises you your mortgage, they generally issue you a "commitment letter" which tells you the other things that they're going to need you to do before they can close -- flood insurance should have been on this list.

Truly not a big deal, however. I think my flood insurance at the beach (for a house, in an area where there is a much larger risk of an actual flood) has been something on the order of $400 a year.

If you do not have an insurance agent you like, email me (put Streeteasy in the subject line so I can find it) and I'll give you the name of mine. He's gotten us insurance in New York City too.

ali r.
{downtown broker}

the bank found the need while issuing the commitment. the sponsor needs to get it for us to close.

To be clear, every property is in a flood zone. It's just that the property may be in a 100 year flood zone or a 500 year flood zone. As bugelrex states above, find out what flood zone you are in. The bank probably spent $25 (of your money) to get a flood zone certificate for your property.