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Insurance Co. & Revision to Flood Policy

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Question: 
Recently the bank has had several loans with flood map revisions into a Special Flood Hazard Area. Some of these customers already have a flood policy in place, however the policies list the SFHA as zone "X". We have been told by two insurance agents that the insurance company cannot revise the policy until the renewal of the policy term. As of now, if we do not receive the revised flood policy reflecting the correct flood zone, we will continue with the force place process. Please advise if the insurance agent/company can revise the flood policy reflect the new SFHA, or if that is not an option that is available to them?
Answer: 

I would not. If they purchased the current policy prior to remapping, they will be grandfathered. At next renewal, all you will see is that the grandfathered box will be checked. Their premiums will still remained based on the zone that they were in before remapping for as long as they own the policy.

First published on 12/22/2019

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