If you’ve been feeling awash in flood insurance woes, take heart. Those who live in areas that require flood insurance will have more options starting in July, when new rules take effect.
Currently, mortgage lenders mostly accept expensive government options. Come July, however, lenders will be required to also accept private policies that meet certain minimum requirements; for example, that the policies come from a state-licensed issuer and offer “at least as broad” a policy as those from government programs.
The hope is that more entrants in the market will result in less expensive prices.
“[The rule is] the result of a years-long process that began with the goal of stimulating the private flood insurance market, and seems well-timed given the threat of further sea-level rise to many coastal areas,” reports the real estate news site Inman.