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!