Skip to content

Flood Insurance - Additional Premium Owed

Answered by: 

Question: 
We have a borrower that has flood insurance in place. While reconciling the flood determination to the insurance policy, I noted that the firm zones did not match. I brought this to the attention of the insurer who submitted the information to FEMA. I was copied on a letter from the insurer to the borrower requesting an additional premium as the firm zone was changing. Do we need to issue a 45 day letter because we are aware that an additional premium is owed and if so, what amount would we have to force place?
Answer: 

If the borrower does not have the correct flood insurance zone, you have inadequate insurance and this triggers the force placement notification requirements. It's not the amount you would force place in 45 days, it's the correct policy/zone coverage.

First published on BankersOnline.com 11/24/08

First published on 11/24/2008

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics