FHA Updates Flood Insurance Requirements
- Posted by Daniel Simcock
- On December 27, 2022
- fix and flip insurance, homeowners insurance
The U.S. Department of Housing and Urban Development (HUD) has changed its policy to allow borrowers of Federal Housing Administration (FHA) mortgages to purchase private flood insurance. This change is part of HUD’s efforts to increase the availability of flood insurance options for homeowners. Previously, FHA borrowers could only buy flood insurance through the National Flood Insurance Program (NFIP), which has faced challenges in recent years due to limited coverage and high premiums. By allowing borrowers to buy private flood insurance, HUD hopes to provide more affordable and comprehensive options for homeowners.
Additionally, HUD has increased the maximum coverage limits for flood insurance policies. These new limits will take effect on December 21, 2022, and will increase the maximum coverage for single-family homes from $250,000 to $500,000 and for non-residential properties from $500,000 to $1 million.
These changes are expected to benefit both homeowners and lenders, as private flood insurance options may provide more competitive rates and increased coverage. It is important for homeowners to understand their flood risk and shop around for the best insurance options to protect their properties.
Overall, these changes to flood insurance policies are a positive step towards providing more options and protections for homeowners. It is important for borrowers to stay informed and make the best decisions for their individual needs.
We hope we’ve helped you learn more about flood insurance requirements. And now we’d like to turn it over to you. Did you learn something new from this article? Or do have a question about your insurance policy? Leave a comment below or contact us at firstname.lastname@example.org.