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#2230032 - 01/31/20 05:25 PM Force Placed Flood Policy
parr04 Offline
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Joined: Aug 2004
Posts: 391
oklahoma
If we force place flood insurance coverage on behalf of a borrower do we have to provide the borrower a copy of the policy?

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Flood Compliance
#2230087 - 02/01/20 12:24 PM Re: Force Placed Flood Policy parr04
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,355
Galveston, TX
It is one of those common sense things that you are not going to find any specific guidance on, but if you are making someone pay for something, why would you think that you did not have to tell them what it was?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2230103 - 02/03/20 03:58 PM Re: Force Placed Flood Policy rlcarey
parr04 Offline
Gold Star
Joined: Aug 2004
Posts: 391
oklahoma
I am in total agreement but our forced placed flood insurance is provided under a master policy.
We do not have an individual policy for each loan, I just get a statement showing the insured, the amount of coverage provided, the date coverage begins and the location of the covered structures.

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#2230108 - 02/03/20 04:13 PM Re: Force Placed Flood Policy parr04
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,355
Galveston, TX
Since the policy has to include the borrower as a named insured - how do they know what is actually covered under the policy and how they have to go about filing any claims?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2230126 - 02/03/20 06:43 PM Re: Force Placed Flood Policy rlcarey
parr04 Offline
Gold Star
Joined: Aug 2004
Posts: 391
oklahoma
That is my point. I have been telling management that the blanket coverage we currently have for force placed flood insurance would not meet FEMA requirements.
I think we should purchase a separate policy (NFIP or Private) for each loan that has forced placed coverage.
Basically we have coverage to protect the bank and not the borrower.

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#2230137 - 02/03/20 07:30 PM Re: Force Placed Flood Policy parr04
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,355
Galveston, TX
If the borrower is not the named insured (along with the bank would be OK), then I agree.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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