Private Flood Insurance for Conventionally Financed Properties

[Zachary Piatt]

My lender told me that their bank will not accept private flood insurance for the property that I want to conventionally finance through them. He said that it must be government backed and that he doesn't know of any banks that will accept private flood insurance. I like the guy and trust him, but I wanted to see if anyone had any similar experiences. Yes I am contacting other Banks.

We have been quoted $2600-2900 for gov backed flood insurance and $700-850 for private.

[John Mocker]

Zachary, I just had to go over this for a renewing flood account. What I told the mortgagee was that the Biggert-Waters Act (as revised in 2016) requires lending institutions to accept private flood Insurance that meet the statutory definition of "private flood insurance". The Act gives a streamlined test to determine if a policy is compliant. If the policy contains the following: ‘‘This policy meets the definition of private flood insurance contained in 42 U.S.C. 4012a(b)(7) and the corresponding regulation.’’ It is supposed to be considered compliant. I can send you the Office of Comptroller of the Currency that I used for the above info that I gave to my clients lender. Hopefully that will help. PM me your email and I will send it. John Mocker