We received the question below from a CMG member who is hoping to hear feedback from other banks. Please take a minute and let her know your bank’s policy. Thank you!
Are most banks currently accepting private flood insurance policies? Why or Why not?
For banks accepting private flood policies, are you reviewing the private policy in detail to ensure coverage is at least as broad as a standard flood insurance policy (SFIP)/are you comparing policies? Are you considering other criteria from the proposed definition of private flood insurance?
If you are doing this analysis, how long does it typically take per policy?
We currently have 1 private flood policy in our portfolio. This policy was written through American Flood Research who does our flood determinations. The policy included a certification from AFR that the policy is comparable to the NFIP policy. Also included is a list of “differences” between the private policy and the NFIP policy. Even though the certification was provided, we still conducted an internal review using the checklist provided in the CMG session in February 2018 to review the policy to ensure comparability. In accordance with our policy, upon satisfactory review, we accepted the policy.