The Housing and Urban Development Department (HUD) has opened up an option for more mortgage borrowers in special flood hazard areas (SFHAs) to access the private flood insurance market. While a welcome change, the timing is “lousy” according to a private flood insurance boss.
Previously, Federal Housing Administration (FHA) insured mortgage holders in SFHAs were compelled to obtain flood insurance through the National Flood Insurance Program (NFIP) under the Flood Disaster Protection Act (1973). Following the changes, they will have the option to access the private flood insurance market.
