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Flood Zone & Insurance Policy Conflict

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Is it a violation if your flood hazard determination reflects one flood zone, but the insurance policy reflects a different zone? Do the examiners focus on the zones or mainly sufficient coverage/timing?

This has been a very hot topic in the public forum and a search on flood zone mismatches will produce several discussions. An improper zone rating will jeopardize your coverage and if done intentionally by the agent strictly to save the client money it could also be considered insurance fraud. The regulators, the FDIC anyway, looks at the zone matches as well as the coverage and timing requirements. Unless the property qualifies for the grandfathering exemptions we require the zones to match.

First published on 7/23/07

First published on 07/23/2007

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