Flood Insurance Basic For Houston First Time Home Buyers

Hello, did you know that FHA home buyers will soon be able to purchase flood policies from private insurers, which could mean big savings?  The rule was, and still is, if you are a FHA home owner, you are required to have flood insurance if your property is in a FEMA designated flood area.

The only place you could obtain that insurance was through the National Flood Insurance Program. However, starting December 21st 2022, that will no longer be the case.

According to The Department of Housing and Urban Development, you will be able to purchase flood insurance through private insurers, a decision the National Association of Realtors stand firmly behind.

Although this will be new for FHA home owners, home owners with conventional mortgages have long been able to purchase flood insurance from private insurers for more than a few years now. Under the previous FHA rule, home buyer’s choices were very limited.

With the average cost of flood insurance through the NFIP right at $738 per year, this price would vary greatly depending on factors that included the location of the property and how much coverage is needed.

The share cost of flood insurance was the main reason many FHA home owners did not have the required NFIP coverage.

Now, with the option to obtain flood policy through private insurers, this may enable some borrowers to get policies that are less expensive or enhance existing ones. As always, thank you so much for stopping by. Until next time...Diana

Image created and design by Diana.