Since 1968, the Federal Emergency Management Agency (FEMA) has provided National Flood Insurance coverage through the National Federal Insurance Program (NFIP). The NFIP program has offered insurance protection for homeowners against potential flooding damage for over 50 years.
However, effective July 1, 2019, several long-standing federal flood insurance statutes will be revised. At that time, a five federal agency joint rule will now require federally-regulated lenders to accept private flood insurance; if the flood policy meets the criteria set forth by the Biggert-Waters Flood Insurance Reform Act of 2012.
Homeowners in and around the Marietta, GA area who are interested in learning how this new federal statute might benefit their insurance coverage are encouraged to call the LG Insurance Group. Let their experts explain how this new rule may impact your personal insurance scenario.
The regulatory agencies involved in the joint rule include the Federal Deposit Insurance Corporation, the Federal Reserve, the Currency Comptroller, the Farm Credit Administration, and the Federal Credit Union Office of Administration.
Their joint ruling includes the following matters:
- Requires lenders to accept flood insurance from a private insurer if the policy meets the guidelines set forth by the Biggert-Waters Act.
- Clarifies the circumstances under which a lender can accept private flood insurance policies that fail to meet the Biggert-Waters Act’s benchmarks.
- Permits lending institutions to utilize flood coverages offered through agency-approved mutual-aid societies.
- Prohibits regulated lenders from funding mortgages on homes (located in special flood zones) unless the property closes with sufficient flood insurance coverage.
Flood insurance options are now becoming available for the first time! Now is the time to let the professionals at LG Insurance Group clarify the flood insurance options for homes located in and around the Marietta, GA metro area.