The National Flood Insurance Program: The Private Flood Insurance Rule

Concerns regarding long-term fiscal soundness of the NFIP led to Congress passing the Biggert–Waters Flood Insurance Reform Act of 2012. The idea was to stimulate the private flood insurance market by mandating that lenders accept private flood insurance in satisfaction of someone's flood insurance purchase requirement. Although financial institutions were told they needed to accept private flood insurance, there was confusion as to how to implement this mandate. In January of 2019, a long-awaited final rule was approved that implements certain provisions of Biggert-Waters and clarifies the legal standards regarding lenders' acceptance of private flood insurance, going into effect in July of 2019. In this course, we'll discuss what's required under this rule