We have received an application for flood insurance from a WYO insurance company for a property located in a flood hazard area. We also received evidence of payment of the premium, so between the application and evidence of payment, we have evidence to allow us to close our loan. Each page of the application has a watermark across the front that says, "Non-Binding Application Preview", and also says, 'This application is non-binding and subject to review and approval by the company."

The non-binding part concerns me - is it typical for a WYO application to state this? Is it still acceptable to allow us to close our loan?

It may be related to the anticipation of the government shutdown next week See page 2 of this document: https://nfipservices.floodsmart.gov/sites/default/files/w-23012.pdf

"Any quote provided during a lapse is for informational purposes only, is not binding, and is subject to change if the lapse ends and the authority to enter into new flood insurance contracts is restored."

A WYO company may not bind a NFIP policy anyway, only the NFIP can do that, so as long as the NFIP application is completed appropriately, I would not lose too much sleep over it.

Thank you so much for the explanation and the link!!