One reason it might be an issue. is when you apply for a loan you get a preapproval letter with a upper limit on how much you can afford. usually that calculati

One reason it might be an issue. is when you apply for a loan you get a preapproval letter with a upper limit on how much you can afford. usually that calculation wouldn't take flood insurance into account. So, when you go to apply for a loan and it has flood insurance in the calculation it could go over the debt to income required for the loan. Also, people could balk at the cost of the insurance.