It is actually much easier to cancel a Private Market Flood Insurance (PMF) policy than an National Flood Insurance Program (NFIP) policy. There are a lot of restrictions to cancel a NFIP policy mid-term. Your PMF policy has a 25% minimum earned clause. It basically means that they keep 25% of the premium if you cancel mid-term. So, you cannot cancel until after 3 months and expect a return premium. After 3 months, you can cancel for a pro-rata return premium. They do keep any fees associated with writing the policy, but you do get a pro-rated return of the premium.
Give us a call at: (508) 997-3321 or visit our website at: https://coastalinsurancema.com/get-a-quote-flood-insurance/
Private Market Flood Insurance policies are as good if not better than their NFIP cousins.
The government has mandated that all Private Market Flood (PMF) Insurance policies are exactly the same as National Flood Insurance Program (NFIP) policies. In fact, PMF policies are a lot better. You can purchase up to $2,000,000 on the building or $500,000 in contents. The maximum amount of dwelling coverage you can purchase on an NFIP policy is only $250,000 and you can only purchase $100,000 of Contents coverage. You have several deductible choices on a PMF policy. $1,000 to $100,000.
You can purchase coverage for “Loss of Use”/ Temporary Living Expense. If you have a flood and have to move out of your home for a few months while rebuilding, you can have some coverage to live in a hotel. Other options include Pool Repair and Refill, Basement Contents, Unattached Structures and Replacement Cost Contents. PMF has shorter waiting periods too. An NFIP policy has a 30 day wait, where a PMF policy typically has a 10 day wait. The waiting period is waived in both instances for a loan closing. This protects insurance companies from people running out and buying flood insurance the day before a hurricane is predicted to hit.
Give us a call at (508) 997-3321 or find us on the web at: https://coastalinsurancema.com/get-a-quote-flood-insurance/
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.
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