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Today is November 16, 2020, and in this video, we are discussing the FHA announcement on November 10, 2020.
This announcement had to do with the FHA accepting private flood insurance. Back in 2019, the FDIC started allowing private flood insurance on loans if it met certain conditions. At FloodInsuranceGuru, we help homeowners and lenders understand how these changes can impact flood coverage options.
The video below shows some of those requirements.
In today’s video, we look at three things:
- What does announcement mean?
- The impact on you
- What to expect next?
So what exactly does this announcement mean?
It means that the FHA is opening up a comment period of 60 days on accepting private flood insurance.
This means that at the end of the 60 days, they will take the feedback and determine if they will accept private flood insurance.
If they do decide to accept it, what would be next?
More than likely, if they did accept it, a decision would probably come down in the 2nd quarter of 2021.
Then they may put a 6-month wait period in place before it goes into effect.
So what could be the impacts on property owners?
Well, it could impact current property owners who have an FHA loan in a good way.
It could mean that you now have options for flood insurance. This may allow you to get more coverage on a flood insurance policy. It could mean you save up to 50% on your flood insurance, or it could mean nothing at all.
It will all come down to the type of risk.
If it's a high risk you might currently be in a better position. That's definitely something you want to review before making any changes.
So that's the topic of today's video.
So if you have further questions about how this could impact you, then make sure to click here.
Remember, we have an educational background in flood mitigation. So we are here to help you understand your flood insurance, flood risks, and mitigate your property long-term.
