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#633909 - 11/03/06 02:00 PM Flood Insurance
questioning Offline
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Joined: May 2002
Posts: 194
We had a flood certificate on a piece of property indicating that it was in Flood Zone A. Upon a new loan request, a new flood was ordered and it indicated Flood Zone AE. We found through this process that the zone on the customer's insurance has never matched our zone. When we contaced the insurance company to change the zone from X to AE, they refused upon the bases of "Grandfather" rules because the customer has had the flood insurance for 15 years. I am not familiar with this rule and need some help. Can someone explain if this is valid and how we need to document our file?

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Lending Compliance
#633910 - 11/03/06 02:05 PM Re: Flood Insurance
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,832
Bloomington, IN
Do a search in the threads using +flood +grandfathered and you will find previous discussions with some additional information on grandfathering. Or go to the FEMA Web page and search on grandfathering. If your customer has had flood insurance continuously for 15 years they would fall under the grandfathering exception.
The opinions expressed are mine and they are not to be taken as legal advice.

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#633911 - 11/03/06 02:08 PM Re: Flood Insurance
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 79,622
Galveston, TX
It may be a legitimate claim.

Here is a great FEMA document that I have found helpful in explaining when this is possible. It also includes a handy flowchart (if you can follow it ):
The opinions expressed here should not be construed to be those of my employer:

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