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#2201725 - 12/28/18 09:46 PM Transfer of Flood policy to new borrower
M&M Offline
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Joined: Nov 2003
Posts: 527
Midwest
We have a commercial borrower who is closing on a loan next week, and the insurance agency who holds the flood policy for the current owner was able to "transfer" the policy to our borrower, essentially by getting approval to change the Insured name from the current owner to the soon to be new owner. The policy effective date and expiration date are staying the same (Feb 2018/Feb 2019). The coverage all checks out to what it needs to be. Is this ok for us to accept on a new flood loan as long as it was effective prior to our loan closing?

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Flood Compliance
#2201726 - 12/28/18 09:49 PM Re: Transfer of Flood policy to new borrower M&M
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,573
Galveston, TX
Yes.
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#2201730 - 12/28/18 09:53 PM Re: Transfer of Flood policy to new borrower M&M
M&M Offline
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Joined: Nov 2003
Posts: 527
Midwest
Thanks Randy. I've never seen this done, so I was a little leery...

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#2201732 - 12/28/18 10:07 PM Re: Transfer of Flood policy to new borrower M&M
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,573
Galveston, TX
Assignment of Policy

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. Policies on buildings in the course of
construction and policies insuring only contents may
not be assigned.

The assignment section on the General Change
Endorsement form must be completed. Select “Other”
on the General Change Endorsement form if the
assignment is due to inheritances, gifts, transfers of
ownership without purchase, assignments
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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