Skip to content

Flood Zone Change & the Grandfathering Rule

Answered by: 

Question: 
If a bank has a customer that was located and insured in flood zone AE, but due to a recent flood map change is now in flood zone VE, does the grandfathering rule apply? If so, is the requirement that the insurance premium stay at the AE zone rate, but the property still needs to be insured for zone VE or will FEMA pay for a VE loss even though it has been insured as an AE zone?
Answer: 

The grandfathering rules are explained in the Mandatory Purchase of Flood Insurance Guidelines beginning on page 12 here.

First published on BankersOnline.com 9/29/08

First published on 09/29/2008

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