Q: Will the agencies provide any further guidance to help lenders make a determination on whether a private flood insurance policy is “at least as broad as” an NFIP policy?
A: The Private Flood Insurance Rule specifies the requirements for determining whether a private policy provides coverage that is “at least as broad as” the coverage provided under the SFIP. The agencies are in the process of updating the flood insurance examination procedures to address the private flood insurance requirements including the “at least as broad as” requirement.
Each agency will make these examination procedures publicly available. Lenders can use these examination procedures to assist with their evaluation of the “at least as broad as” requirement.
This Q&A was part of the discussion in the Outlook Live – 2019 Interagency Flood Insurance Update on Private Flood Insurance Rule webinar held on 6/18/19 and focused on the new private flood insurance rules that become effective 7/1/19. Information may be found here: https://www.webcaster4.com/Webcast/Page/577/30085