The Independent Insurance Agents & Brokers of New York has issued a bulletin reminding its member agencies and brokerages to keep in mind that the National Flood Insurance Program (NFIP) requires a waiting period before a flood policy is issued.
The timely warning comes as the spring flood season nears, and is aimed at agents and brokerages who may not have a large number of flood policies and may be unaware of the requirements. The IIBNY warned that, “If a property owner waits until a storm is only days or hours away, the property will go uninsured.”
The bulletin also noted, however, that there are exceptions to the rule. There is no waiting period in the following circumstances:
… if a client has an existing flood policy and an additional amount of flood insurance is required with the making, increasing, extending or renewing of a loan, such as a second mortgage, home equity loan, or refinancing. Coverage is effective immediately, as long as the premium is presented at or prior to loan closing.
… when flood insurance is required as a result of a lender determination that a loan, which does not have flood insurance, should be protected by flood insurance. Coverage is effective immediately, as long as the premium is presented at the completion of a loan application.
…when an additional amount of insurance is required as a result of a map revision.
The IIABNY noted that it “offers its members agencies and brokerages access to the National Flood Insurance Program through Big “I” Markets, a package of insurance products assembled by the Independent Insurance Agents & Brokers of America that feature no volume requirements or access fees.”
Was this article valuable?
Here are more articles you may enjoy.