Private Market Flood insurance can save you a ton of money, but will your bank/mortgage company accept it? The Biggert-Waters Flood Insurance Reform Act of 2012 amended the Federal flood insurance legislation to require the FDIC, the National Credit Union Administration, The Farm Credit Administration, The Federal Reserve and the Office of Comptroller of Currency to issue a final ruling. As of July 1, 2019, they have come together and have mandated that all private banks accept insurance policies issued by private insurers, as long as a private insurers policy meets the statutory definition of Private Flood Insurance. Your bank may request proof in writing that the policy is in compliance with the statute.
We have learned that some government loans such as an FHA loan will NOT accept Private Market Flood. They still require that flood insurance be with a National Flood Insurance Program (NFIP) insurer, backed by FEMA. Hopefully, the government will amend this in the near future so homeowners with an FHA loan can save on their flood insurance as well.
It is best to check with your bank to make sure that they accept a Private Market Flood policy.
Give us a call at: (508) 997-3321 or visit our website at: https://coastalinsurancema.com/get-a-quote-flood-insurance/