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Timing of Force Place Flood Insurance Notification

Answered by: 
Dan Persfull

Question: 
We need clarification on the timing of when the first notice must be sent to force place flood insurance. I know that we must purchase flood insurance within 45 days after the notification is sent if the borrower fails to purchase flood insurance or provide verification of coverage, however, is it acceptable to mail the first notification a week before the existing policy expires?
Answer: 

No. You are required to notify the borrower and give them 45 days to obtain insurance from the time you become aware you are not covered or you have insufficient coverage. You have coverage until the policy expires. This doesn't mean you can't send them a friendly reminder that the policy is about to expire, but you cannot begin your force placement procedures until it does.

First published on BankersOnline.com 10/23/06

First published on 10/23/2006

Filed under: 
Lending
Filed under lending as: 
Flood
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