FHA Will Now Accept Private Flood Insurance Policies 

by | Dec 19, 2022 | Industry Resources, News & Commentary

Summary of Ruling:

The U.S. Department of Housing and Urban Development (HUD) announced that it is increasing flood insurance options for homeowners with Federal Housing Administration (FHA) mortgages living in special flood areas. Effective December 21, 2022, the FHA will now accept flood insurance from private insurance providers like Palomar.

Specifically, the final rule updates FHA regulations to allow borrowers the option to purchase a comparable private insurance policy meeting FHA requirements for FHA-insured mortgages secured by properties located in Federal Emergency Management Agency (FEMA)-designated Special Flood Hazard Areas (SFHAs).

What does this mean for you?

Agents, you can now offer private flood to customers with a government-backed (FHA, VA, USDA) loan. Homeowners, you can now obtain a more comprehensive flood policy from private markets like Palomar.  

Palomar Flood Insurance vs. FEMA’s NFIP Flood Insurance

Unlike the National Flood Insurance Program (NFIP), private flood insurance is provided by companies like Palomar rather than the federal government. Palomar’s policies offer more flexibility and broader coverage than standard NFIP policies.

You can find a breakdown of key product differences within this downloadable guide.

Palomar Flood Benefits

  • No waiting period for zero delays
  • No elevation certificate for time and money savings
  • Higher coverage limits for maximum protection
  • Payment plan options available

Contact your agent today to get the flood insurance you need!

Bill Bold

Bill Bold

Bill Bold is the Public Affairs Advisor at Palomar where he is responsible for policy, legal and regulatory affairs. He brings over 30 years of experience in public policy and its relationships with government entities at the international, federal, state and local levels.
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