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#2165407 - 02/22/18 01:36 PM Private Flood Policy
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
What are the pitfalls we need to look for when accepting a private policy? This is our first one that I can ever remember getting here.

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Flood Compliance
#2165409 - 02/22/18 01:51 PM Re: Private Flood Policy mdog76
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,912
Galveston, TX
Well, the regulators still have not finalized the flood private insurance regulations. But, you might want to look at the proposal to see (at least) the proposed requirements that may be imposed in the future to make sure that the policy that you accept is at least close. Other than that, acceptance is really a business decision at this point. Basically, you want to make sure the coverage is at least as broad as that of a NFIP policy and that proper notifications of renewal and cancellation are provided to the mortgagee.

https://www.fdic.gov/news/news/press/2016/pr16097a.pdf
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#2191840 - 09/06/18 05:59 PM Re: Private Flood Policy mdog76
bcompliance Offline
Diamond Poster
Joined: Sep 2014
Posts: 1,252
We have a consumer customer that owns a condo in a complex. The building the condo is in has 16 units. The condo association has a policy that covers the complex. The complex went to a private policy. When we received the policy, it is broken out into two separate policies. Through conversation with the insurance agent, he informed us that one is the "Primary Policy" and one is an "Excess Policy". Both policies are through the same insurance company. They state they separated the two because of rate. The coverage amount on the Primary Policy is $250,000 per occurrence per building and the RCV on the building is $1,384,000. The coverage amount on the Excess Policy is $1,303,000 in excess of $250,000 per occurrence per building. According to the agent, both of the policies are follow form, so if one it floods and the primary policy covers it so will the excess. My question is has anyone else dealt with this, and if so what is the amount of coverage - $250,000 or $1,303,000?
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#2191862 - 09/06/18 08:03 PM Re: Private Flood Policy mdog76
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,912
Galveston, TX
Sounds like $1,553,000 to me, but without reading the actual policies - it is hard to say/
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2191868 - 09/06/18 08:36 PM Re: Private Flood Policy mdog76
bcompliance Offline
Diamond Poster
Joined: Sep 2014
Posts: 1,252
makes sense to add the two together since it says the amount above 250,000 is 1,303,000..... sounds like we have adequate coverage. thank you Randy for your help.
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