For some reason I thought after December 2012 transferring of flood policies is no longer valid. Each new property owner would have to purchase their own flood insurance policy on the property they are purchasing. Can you confirm if that is correct or not? We have a borrower that wants to just have the flood policy transferred from the current owner at the time of the loan closing. I am thinking we can not do that....

Thanks for your help -

I just want to clarify - it would be considered an Assignment of a Flood Policy from a buyer to a seller.

Thanks-

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Further guidance on the assignment of a flood policy in connection with the purchase of a property (GR, APP, RATE, PRP, and END Sections).

You'll have to some searching in the NFIP Flood Insurance Manual.

http://www.fema.gov/flood-insurance-manual

The Homeowner Flood Insurance Affordability Act of 2014 repealed and revised that and some other things. A new owner can assume a current owners policy. A summary of the changes change be found at
http://www.fema.gov/media-library/assets/documents/93074

We received a "Policy Assumption Request Form" signed by the seller and the purchaser. Is this form sufficient evidence of a policy transfer to close a loan?

There is a statement on this form "coverage is not bound or in effect prior to underwriting review, receipt of all required documentation and premium submission" -

does this mean that coverage is not in place when the policy assumption is signed? There is no premium, everything in the current policy will remain the same.

Can we accept this form?

thanks,

From the NFIP Insurance Manual, so I would say yes.

E. Assignment

A building owner’s flood insurance building policy may be assigned to a purchaser of the insured building with the written consent of the seller. The seller must sign the assignment endorsement on or before the closing date.

However, I would probably request a copy of the signed General Change Endorsement that the insurance agent is submitting to NFIP.

Thank You

The insurance company is saying there is a 7 day waiting period before it can be transferred into the buyer's name. Is it okay if we close before the end of the 7 day waiting period. Does the flood insurance have to be in the name of the seller prior to closing?