"We know borrowers face affordability challenges right now, yet a flood can be devastating to a family who is not properly insured," said Federal Housing Commissioner Julia Gordon. "The choice to select a private flood insurance option may enable some borrowers to obtain policies that are less expensive or provide enhanced coverage." (Credit: Sergio Flores)
Starting Dec. 21, 2022, homeowners located in FEMA special flood hazard areas (SFHA) that have Federal Housing Administration-insured mortgages will be able to obtain flood insurance through the private market, the U.S. Department of Housing and Urban Development (HUD) reported.
Mortgages insured by the Federal Housing Administration (FHA) are required to have flood insurance if the property is located in an SFHA. Prior to the new regulation, only coverage from the National Flood Insurance Program was allowed for FHA-backed mortgages, which limited policyholders' insurance options, HUD reported.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
