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#2034200 - 08/18/15 02:11 PM Monthly Flood Payments
Cedar Point Guy Offline
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Cedar Point Guy
Joined: Nov 2009
Posts: 732
Cedar Point
Hi All,

I have a loan that is closing that has building in a flood zone. I know I can close the loan with an application for flood insurance and proof of payment. My questions are with the proof of payment. Can the customer pay on a month to month basis or does the proof have to be for a full year's of coverage? Customer is trying for a LOMA and only wants to pay on a month to month basis for flood insurance. Of course this is all based on if the flood insurance company will allow the customer to pay on a month to month basis.
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Flood Compliance
#2034220 - 08/18/15 03:01 PM Re: Monthly Flood Payments Cedar Point Guy
Tryin2Comply Offline
Member
Joined: Aug 2014
Posts: 76
When do monthly flood insurance payments go into effect? I have a note on my calendar from a long time ago that FEMA will allow monthly flood payments starting on September 1, 2015. But I'm not too sure about that. Does anyone know?

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#2034262 - 08/18/15 04:22 PM Re: Monthly Flood Payments Cedar Point Guy
Jerod Moyer Offline
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Jerod Moyer
Joined: Oct 2005
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Sioux Falls, SD
As of right now NFIP insurance is only available via an annual policy. It's going to eventually change, maybe 9/15 but I've heard rumors they won't be ready so we'll see. There may be a private insurer out there would allow month to month payments but I'm not aware of any.
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#2034358 - 08/18/15 08:04 PM Re: Monthly Flood Payments Cedar Point Guy
Cedar Point Guy Offline
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Cedar Point Guy
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Cedar Point
So to follow up if the private flood insurance company will except payments monthly for flood can the bank accept it as a paid policy???
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#2034367 - 08/18/15 08:12 PM Re: Monthly Flood Payments Cedar Point Guy
Jerod Moyer Offline
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Jerod Moyer
Joined: Oct 2005
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Sioux Falls, SD
The only "guidance" as of right now resides in the 10/13 Flood Insurance proposal (see the section on private flood insurance criteria) or the rescinded Mandatory Purchase of Flood Insurance Guidelines (FEMA indicated they overstepped with respect to the criteria listed). So that's really all you have to go on right now. Nothing official.
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#2034710 - 08/20/15 03:11 AM Re: Monthly Flood Payments Cedar Point Guy
rlcarey Online
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rlcarey
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Posts: 83,219
Galveston, TX
If they get a LOMA their annual premium will be refunded anyway - so what is the big deal?? I'll send you a $100 bill if they can find an insurance company that will sell flood insurance on a monthly basis right now, although the law requires NFIP to implement it by 9/21/15.
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#2135851 - 06/26/17 06:19 PM Re: Monthly Flood Payments Cedar Point Guy
Skittles Offline
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Skittles
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TN
Tagging onto this thread. We have a customer who wants to pay their coverage monthly. Is this allowed through the NFIP? We are researching; however need a response quickly.

Thanks!
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#2135852 - 06/26/17 06:25 PM Re: Monthly Flood Payments Cedar Point Guy
rlcarey Online
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rlcarey
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Galveston, TX
Not through the NFIP - whether an agent will allow it by advancing them funds - I doubt that too.
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#2135853 - 06/26/17 06:27 PM Re: Monthly Flood Payments Cedar Point Guy
Skittles Offline
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Skittles
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TN
Thanks, Randy. Do you know where we can find this? Is it on the NFIP website?
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#2135854 - 06/26/17 06:30 PM Re: Monthly Flood Payments Cedar Point Guy
rlcarey Online
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rlcarey
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Galveston, TX
https://www.fema.gov/faq-details/Paying-for-Flood-Insurance

There is no monthly billing for NFIP flood insurance. It is all or nothing.
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#2135984 - 06/27/17 02:19 PM Re: Monthly Flood Payments Cedar Point Guy
David Dickinson Offline
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David Dickinson
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Central City, NE
Not yet. That's in the the NFIP reform discussions, however. Coming soon.
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#2135998 - 06/27/17 02:49 PM Re: Monthly Flood Payments Cedar Point Guy
Skittles Offline
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Skittles
Joined: Sep 2002
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TN
Thank you both for your responses. We didn't want to accept them anyway (the compliance team). It would be very difficult to monitor and force-place if need be.
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#2136328 - 06/28/17 07:36 PM Re: Monthly Flood Payments Cedar Point Guy
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
With the push for escrow of flood insurance premiums, I wonder how hard anyone will promote the idea of the insurer accepting installment payments.
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