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Do you have to wait 30 days for flood insurance if you are purchasing a house?
Posted on 2/26/18 at 4:07 pm
Posted on 2/26/18 at 4:07 pm
Everyone knows you must wait 30 days for flood insurance to go into active mode. I believe the exception is when you are making a purchase of a home. I think it goes into effect as soon as you pay the premium at closing. Is this correct or wrong?
Help settle a debate.
Help settle a debate.
5
Posted on 2/26/18 at 4:07 pm to iamAG
quote:You still have to wait 30 days if the flood insurance is not required by the mortgage company....
Everyone knows you must wait 30 days for flood insurance to go into active mode. I believe the exception is when you are making a purchase of a home. I think it goes into effect as soon as you pay the premium at closing. Is this correct or wrong?
Help settle a debate.
Posted on 2/26/18 at 4:10 pm to lsupride87
If the house is in a flood zone wouldn’t the mortgage company require insurance and then then insurance would become active at closing without the wait?
Posted on 2/26/18 at 4:10 pm to iamAG
quote:Yes. But it is active without wait due to being necessary to close a loan, not due to buying a house
If the house is in a flood zone wouldn’t the mortgage company require insurance and then then insurance would become active at closing without the wait?
If you buy not in a flood zone, you still have to wait 30 days
Posted on 2/26/18 at 4:11 pm to iamAG
if mortgage company requires flood and a policy is written eff date of closing, then yes, you can bind it that day. Usually need to send flood company proof of closing doc.
Posted on 2/26/18 at 4:11 pm to iamAG
Loan closings are the only exception to the 30 day wait. If you're closing date is March 1, just purchase the flood policy on or before that date. Only applies to loan closings...cash sale still has 30 day wait (so buy the flood policy as far ahead of time as possible to get the waiting period started).
Posted on 2/26/18 at 4:12 pm to lsupride87
quote:
If you buy not in a flood zone, you still have to wait 30 days
list the mortgage company and bind eff. closing date.
Posted on 2/26/18 at 4:13 pm to lsupride87
quote:This is not true
You still have to wait 30 days if the flood insurance is not required by the mortgage company..
Posted on 2/26/18 at 4:14 pm to Chad504boy
quote:If the loan does not require flood insurance for closing, you can do this?
list the mortgage company and bind eff. closing date.
Posted on 2/26/18 at 4:14 pm to ThePoo
quote:Explain. I am simply relaying what I was told by FEMA, and what is written here
This is not true
You can purchase National Flood
Insurance at any time. There is usually a 30-day
waiting period after premium payment before the
policy is effective, with the following exceptions:
1. If the initial purchase of flood insurance is
in connection with the making, increasing,
extending, or renewing of a loan, there is no
waiting period. Coverage becomes effective at
the time of the loan, provided application and
payment of premium is made at or prior to
loan closing.
Posted on 2/26/18 at 4:15 pm to lsupride87
quote:
If the loan does not require flood insurance for closing, you can do this?
yes but day of your closing is your only chance.
Posted on 2/26/18 at 4:16 pm to lsupride87
quote:
You still have to wait 30 days if the flood insurance is not required by the mortgage company....
No, the 30 day waiting period can be waived for loans that flood insurance isn't a requirement for too.
Posted on 2/26/18 at 4:16 pm to lsupride87
quote:
You can purchase National Flood
Insurance at any time. There is usually a 30-day
waiting period after premium payment before the
policy is effective, with the following exceptions:
1. If the initial purchase of flood insurance is
in connection with the making, increasing,
extending, or renewing of a loan, there is no
waiting period. Coverage becomes effective at
the time of the loan, provided application and
payment of premium is made at or prior to
loan closing.
Posted on 2/26/18 at 4:17 pm to lsupride87
quote:
Explain. I am simply relaying what I was told by FEMA, and what is written here
Lender does not have to require it and you do not have to be in a required flood zone, only requirement is you are closing on a home loan that day then your flood can be effective that day
Posted on 2/26/18 at 4:17 pm to iamAG
Well, back in the 2011 flood, the boys with Basin camps would take a mortgage on a fully paid for home. In connection with the mortgage, they could buy flood insurance with no waiting period. These were camps in the middle of the spillway after the Corps announced it was opening the floodgates.
Don’t know if they closed that loophole.
Don’t know if they closed that loophole.
Posted on 2/26/18 at 4:19 pm to iamAG
Everything in La is a flood zone, it just depends on the level. There are ranking of flood zones
Posted on 2/26/18 at 4:19 pm to lsupride87
Nowhere in that paragraph does it mention that the purchase of flood insurance has to be a requirement of the loan for the coverage to become effective on the closing date.
Probably close to half of the flood policies I write are X zones and not required by the lender, and they still go into effect as of the closing date...unless the client declines flood insurance at first, then changes their mind AFTER the closing date. Then the 30 day wait applies.
Probably close to half of the flood policies I write are X zones and not required by the lender, and they still go into effect as of the closing date...unless the client declines flood insurance at first, then changes their mind AFTER the closing date. Then the 30 day wait applies.
Posted on 2/26/18 at 4:20 pm to JudgeHolden
cash out, collateral mortgages, helocs things of that nature
Posted on 2/26/18 at 4:22 pm to Tiger Prawn
quote:Imagine that, FEMA was wrong in what they told me
Nowhere in that paragraph does it mention that the purchase of flood insurance has to be a requirement of the loan for the coverage to become effective on the closing date.
Probably close to half of the flood policies I write are X zones and not required by the lender, and they still go into effect as of the closing date...unless the client declines flood insurance at first, then changes their mind AFTER the closing date. Then the 30 day wait applies.
They told me to apply for it as early as possible so the 30 days would be less by the time I moved in my house. So I applied before closing, and the effective date was like 12 days after I moved in
Posted on 2/26/18 at 4:23 pm to Tiger Prawn
quote:Also, I cant blame it all on fema. When I read "in connection with", I take it to mean that is is a part of closing the loan, aka a necessity to close the loan. Clearly that is incorrect
Nowhere in that paragraph does it mention that the purchase of flood insurance has to be a requirement of the loan for the coverage to become effective on the closing date.
eta: also, the guy that wrote my policies also told me to just apply for it early as possible due to the 30 day wait. I knew I should have got Chad as my insurance guy
This post was edited on 2/26/18 at 4:26 pm
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