Hello,

Im new to flood, so pardon my ignorance, but im having a hard time wrapping my head around what is needed on a private policy declarations page -- Is there any guidance surrounding that ?
We have a commercial borrower (commercial building), that merely added flood coverage to an existing policy and because it’s not through the nfip – they (and the loan officer) are claiming that’s sufficient.
My question is..... is it ?
Also, this is going to sound like a stupid question, but we can’t force them to get a policy through the nfip anymore, right ?

Thanks!

At his point of time, it is really up to the bank whether it is acceptable or not. The regulators have never finalized the private insurance regulations. But I think it would still be wise to make sure that the coverage is sufficiently similar to coverage offered under the NFIP program, and contains similar deductibles and lender notification requirements if cancelled.

Thank you for weighing in....the coverage is above and beyond the nfip minimum requirements, and the deductible is suitable ($5K)..... but what makes me nervous is it’s not a dedicated policy, it is merely an endorsement on their standard hazard policy – do you see that often ?

Thanks again!

Not very often, few insurance companies offer private flood insurance. I would be wanting to read the specific endorsement.

I recently encountered a flood coverage endorsement to a hazard policy. As Randy suggested above, I had requested a copy of the endorsement itself. Upon review, it covered only preferred risk eligible properties in zones B, C, and X (in this case the subject was located in zone A). This was not otherwise specified on the policy.