As of July 1st, 2019, financial institutions must accept a private flood insurance policy if a borrower brings you one. Why? It would seem that the federal government would like to get out of the insurance business as much as possible because not only is there risk, but flood insurance can be complicated. So, they are allowing the private industry to come in and offer flood insurance to assume some of the risk. But there’s a catch. Any private policy must meet the definition of “private flood insurance,” which is where it can get a little complicated.
Kevin explains more in the video.
Video Highlights:
- Lenders must accept a private flood insurance policy if a borrower has one.
- Private flood insurance must; however, meet the definition outlined in regulations.
- Careful examination of the policy is required to determine if it meets all requirements.
Published
2023/03/21
