I don't understand how, if they were in a flood plain and had a mortgage, they were not required to have flood insurance. I suppose that many of the small beach homes which had been passed down thru generations had no mortgage. But I also read that some folks let their policies lapse after a few years of "no claims" and the banks didn't insist on proof of coverage. Strange!I find that pretty surprising, too. Mortgagees here tend to be pretty strict in enforcing the requirement on properties located in a high risk FIRM Zone in my experience.If you live in a designated flood plain and you don't at least have FEMA flood insurance (which has been very cheap but will surely increase now) you're very silly!The vast majority of Flood Insurance policies are placed through the Federal Flood Insurance Program in my experience, with independent insurers merely doing the paperwork for the Program, as they're better at doing that - The premiums are the same (set by the Federal Program) and the Program ends up paying the cost of claims. The rare exceptions that I've, personally, crossed have been properties located in a high risk FIRM Zone in which a community was banned from participating in the Federal Flood Insurance Program because it failed to comply with the Program's mandates, such as requiring that new construction in a high risk Zone be elevated. (I once insured a local church that found itself in that predicament for a few years, through an E&S market, until the community got their act together - pretty pricey premiums, compared to what the Federal Program charged.) The only other instance in which I've noticed independent insurers offering Flood Insurance was when I was once asked to try to find Excess coverage over the Federal Program's maximum. That property was located in a high risk FIRM Zone and wasn't elevated - I wasn't able to find a market for it, unfortunately. I'm hoping the owner doesn't experience a devastating loss - great guy.Bob
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