FHA is the only agency who will not accept non-NFIP policies. They have been ordered to start accepting non-NFIP policies but have not yet changed their rule. Private flood insurance is definitely cheaper.
I also have flood insurance on some rental property and the premium went from $2980 with NFIP and when I switched to Lloyds it dropped to $1030. So Kevin is correct. The problem is some lenders do not allow private flood insurance.
Wonder how many real estate professionals, and homeowners that do or will need flood insurance, know that the flood insurance or the homeowners insurance do NOT cover damage/loss of the contents of the property caused by floodwaters. This is a separate additional policy…
please correct me if this has changed in recent years and I am wrong… thanks…
Florida – which has the most insured properties in the country and who has paid in much more than ever collected now allows private policies. They tend to use more reasonable criteria and usually is less expensive. BTW – the whole state is a flood zone. Properties which are not in a zone which mandates insurance for federally insured loans can get a policy very reasonably. Most homes flooded in Midwest probably don’t have flood insurance.
Per NAR – got extended: https://magazine.realtor/daily-news/2019/05/31/flood-insurance-gets-11th-hour-hail-mary
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