Federal regulators issued a final rule requiring lenders to accept private flood insurance policies, as required by the Biggert-Waters Act of 2012. Effective July 1, 2019, the final rule:
- allows institutions to conclude that a private policy meets the definition if an endorsement to the policy states that the policy meets the definition,
- clarifies that policies issued by “nonadmitted” or surplus-lines carriers are acceptable for both commercial and residential properties,
- confirms that lenders may continue to accept policies that do not meet the statutory definition of “private flood insurance” on a discretionary basis under certain conditions, and
- provides that regulated lending institutions need not accept policies with additional exclusions unless the exclusions have the effect of providing broader coverage to the policyholder.
View the Final Rule