Buying Flood Insurance

Your insurance agent is the best source of flood insurance information. You can learn more about this important topic at www.floodsmart.gov.

Understand that homeowners insurance does not cover flooding. Because of this, your lender is required to determine if you need to buy a separate flood policy. A mortgage lender has the authority to select flood insurance on behalf of the borrower and add the cost to their monthly payment. However, a borrower typically has the option to purchase flood insurance on their own.

If you are interested in learning more about flood insurance, or purchasing flood insurance, we encourage you to contact your insurance agent.

2012 Flood Insurance Reform Act Policy Changes

The act calls for a phase-out of discounts, including grandfathered rates, and a move to risk-based rates for most properties when the community adopts the Flood Insurance Rate Map. So, if you live in a community that adopts a new, updated Flood Insurance Rate Map (FIRM), discounts - including grandfathered rates - will be phased out. This will happen gradually, with new rates increasing by 20% per year for 5 years. Implementation is expected in 2014. 

• Overview of changes
• View complete policy changes

Preferred Risk Policy (PRP) Eligibility Extension

In August 2012, FEMA announced the extension of the of the Preferred Risk Policy eligibility under the National Flood Insurance Program (NFIP) until further notice. This will mean lower flood insurance rates for owners and tenants of eligible property, for a longer period of time. View the FEMA PRP eligibility extension announcement.

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