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#467101 - 12/07/05 04:11 PM Flood-Community in violation
mmason Offline
Gold Star
Joined: Nov 2001
Posts: 447
New England
We just found out that one of our customers has not had flood insurance since March. The insurance company cancelled it because the community is in violation, but they didn't notify us I've never dealt with this issue before, what do we do now? I know if the property is not in a participating community we don't have to require flood insurance (we wouldn't have done the loan though). But I've checked FEMA's list and the town is still on there, it's not listed as withdrawn or suspended. Do we force place? Can we with the town in violation?
Flood issues never seem "normal" for us

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Lending Compliance
#467102 - 12/07/05 04:23 PM Re: Flood-Community in violation
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Click here . Only FEMA has the power to suspend, therefore, as far as I know they are still eligible for flood insurance until FEMA suspends them. I would also send a complaint letter to the Ins Co., not the agent, and to FEMA about the insurance being canceled without notification to you.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#467103 - 12/07/05 06:52 PM Re: Flood-Community in violation
Disneyfan Offline
Member
Joined: Dec 2005
Posts: 59
kansas
Where do you find a listing of the communities that are on probation or suspended? Thanks!

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#467104 - 12/07/05 07:00 PM Re: Flood-Community in violation
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#467105 - 12/07/05 09:04 PM Re: Flood-Community in violation
mmason Offline
Gold Star
Joined: Nov 2001
Posts: 447
New England
Update. Apparently the community had been suspended for a few months. The flood policy came up for renewal during this period so it wasn't renewed, but we were not notified. The community has been reinstated so we are sending the 45 day letter to the customer.

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#467106 - 12/08/05 04:11 PM Re: Flood-Community in violation
Disneyfan Offline
Member
Joined: Dec 2005
Posts: 59
kansas
What type of violations causes a community to be suspended?

Also, does anyone know how much more expensive flood insurance is through the private sector than with NFIP?

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#467107 - 12/08/05 07:34 PM Re: Flood-Community in violation
flood_guy Offline
Member
flood_guy
Joined: Apr 2005
Posts: 81
Quote:

What type of violations causes a community to be suspended?

Also, does anyone know how much more expensive flood insurance is through the private sector than with NFIP?




Not enforcing the policies set forth by FEMA that are required for participating communities. I.e. ignoring the proper steps to reduce risks from flooding. Probation would take place before the suspension.

I'm not sure what the costs are in Gov vs. Private insurance. Not an area I deal with.

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