Feds to allow private flood insurance for FHA loans
TALLAHASSEE - Homeowners with Federal Housing Administration-backed loans will be able to buy flood insurance from private companies, rather than having to get coverage through the National Flood Insurance Program, the U.S. Department of Housing and Urban Development announced Monday.
People with FHA-insured mortgages are required to have flood insurance if they live in areas that the Federal Emergency Management Agency has designated as being at high risk of flooding. But in the past, they have been required to buy the coverage through the National Flood Insurance Program.
Effective Dec. 21, they will also be able to buy the coverage from private flood insurers.
"Flood insurance is required to ensure families and individuals are prepared if disaster strikes," Department of Housing and Urban Development Secretary Marcia Fudge said in a prepared statement.
"Increasing consumer options for this important protection is one way we are building more resilient communities in the face of climate change."
