When should flood insurance payments be made? At closing or before closing? If a flood insurance payment is late it can create some major issues with coverages.

So when should payments be made? Well it depends on who is making the payment. If the insurance agent or the insured also known as the property owner is making the payment they have 10 days to make the payment if it is a NFIP policy. If it is a title company or mortgage company that is making the payment they have 29 days to make the payment. So what happens if the payment is late?

Well let's remember first what the NFIP waiting period on flood insurance policies is? When a loan closing is involved there is no wait period but if it is not for a loan closing than it is a 30 day wait period. So let's say that the mortgage company sends in the payment on the 31st day, what happens?

Well because of the NFIP strict guidelines coverage would not start for 30 days because once payment is received after the 30th day is when the wait period starts. So what if the closing date changed?

If the closing date changed from the original date NFIP just requires a copy of the closing statement that shows what the closing date was.  So lastly when should flood insurance payments be made? Before closing or at closing? Well to avoid any coverage issues we also recommend paying it before closing even though the mortgage company may not require it. However many mortgage companies are starting to require it to avoid such coverage issues down the road.

If you have questions about flood insurance payments or maybe a lapse in coverage a payment caused you please reach out to us. Visit our website Flood Insurance Guru, subscribe to our YouTube channel or like our Facebook page where we do daily flood educational videos.

Chris Greene


Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation