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.