2020 FHA Private Flood Insurance Update

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 FHA accepting private flood insurance. Back in 2019 FDIC started allowing private flood insurance on loans if it met certain conditions.

The video below shows some of those requirements.

In todays video we look at what three things

1. What does announcement mean?
2. The impact on you
3. What to expect next?

So what exactly does this announcement mean?

It means that FHA is opening up a comment period of 60 days about accepting private flood insurance.

This means at the end of the 60 days they will take the feed back 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 come down probably 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 saving 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. Thats definitely something you want to review before making any changes.

So thats 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 mitigating your property long term.