It seems that no one really likes flood insurance. Customers don’t like paying for it, lenders don’t like requiring it and insurance agents don’t like writing it. That is until there’s a flood. Flood insurance is designed to protect people when mother nature unleashes her fury. While there are a lot of players in the flood insurance game, financial institutions bear the compliance burden. They must require borrowers to purchase flood insurance when they have a loan secured by improved real estate located in a Special Flood Hazard Area. They must ensure the coverage amount is sufficient to meet regulatory requirements and they must monitor the coverage over time and force place coverage if it lapses. This is one regulation that you don’t want to take lightly as the risk of non-compliance is high.
Kevin explains more in the video.
Published
2025/04/07